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Category: E-COMMERCE

  • The Future of Direct Response Marketing Part 2: Partners, not Providers

    The Future of Direct Response Marketing Part 2: Partners, not Providers

    Welcome back! In this Part 2 of our interview with Rich Schefren, internet marketing pioneer and “guru to the gurus”, we uncover what the future of direct response marketing holds. His insight on the subject is both understandable and surprising. Use this information to your advantage to prepare a future-proof business model that can capture the eyes and wallets of every target consumer.

    In the first part of this series, we talked about the foundations of a successful business. To sum up, you need the right motivation to keep your own business moving forward, you need a team people motivated to perform their task, and you need to motivate your customers with an irresistible call-to-action (CTA). Motivation isn’t everything, though. You also need to believe in your product before you start selling it.

    With all that out of the way, let’s get into what the future of direct response marketing holds.

    Direct Response Marketing and eCommerce’s Future Are in AI

    That might not be all too surprising. Artificial Intelligence is being used in nearly every industry, becoming more accessible with each passing month. Even now, e-commerce uses AI in a wide variety of ways, especially for marketing campaigns. The catch is that most businesses using it are enterprise-level, not small businesses or entrepreneurs or startups.

    AI only works if there’s data to feed it where it can learn. What’s the best data? Yours, of course. If whatever platform you’re using can consume the data you feed it and provide next-steps or methods for increasing revenue, then you need to be using it. Learning your behavior, the behavior of your existing customers, and the behavior of your potential customers, an AI can give you profound insight into how to keep those customers hooked with insanely good lead generation tools.

    Landing pages, direct mail, email marketing campaigns, and online advertising are much easier to create today. The source codes and AI that power all of them can already help you reach a specific audience, a target market, and raise brand awareness to entirely new levels. Your CRM will be filmed with phone numbers, email addresses, and other customer contact information. Use this to your advantage and submit some form of marketing, of brand advertising, every chance you get so customers can take immediate action. Use direct response marketing to create incentives likes giveaways to increase your conversion rate. You already have a piece of the future in your hands. Use that AI to improve your marketing techniques and create a sense of urgency that’s trackable, traceable, and gives you a return on investment you can barely fathom.

    That also applies for previous data—data from years ago. Good data isn’t only what you have right now or yesterday or last month. You should keep years of data for your business. That will help you see overall trends. Spikes, dips, plateaus, and flatlines from the past will help you sell better in the future.

    Again, this is based on your data. However, AI also works incredibly well when using another company’s data. But that is meant more for seeing global trends, competitor analytics, and applying what works (or doesn’t work) with another company to your own. You need both types of data and you need to start collecting it today.

    Big Tech Is Not A Friend for the Future of Direct Response Advertising

    That’s a bold statement, but it’s becoming increasingly apparent that big tech companies like Google, Facebook, Amazon, and Apple, are not your friends. They’re your competition.

    The problem you, as a business owner, have with big tech is that they make complex data accessible. Google Ads and Facebook Ads make creating and analyzing your marketing efforts a cinch. Being too reliant on these companies can hurt you in the long run if you allow only that company to take care of your data and visibility. Visibility meaning reachability, discoverability, SEO. You need their platforms, their products, to utilize the measurable results that are produced towards a better, more targeted marketing strategy. But don’t let your guard down––these digital marketing channels are not always your friend.

    These big tech companies will only grow larger, which also means your competition will grow larger. And that’s part of your solution to this problem: start viewing them as your competition. Use the tools they offer to promote your business and reach your target audience but be aware of what these big tech organizations are offering so you can compete.

    Customer Attention Is Scarce

    Consumer attention spans are dwindling. Even today, browsing Tik Tok or Instagram gives us the ability to switch to new sensory inputs with a swipe of the finger. That will certainly expand in the future with new services releasing, existing social media platforms improving, and attention spans growing shorter.

    What’ll you do about it? Stay on top of new, even lesser-known, platforms to utilize. If you can sell your product somewhere, then you should put at least minimal effort into building a presence. There will always be a new platform to utilize, and you might miss your golden ticket if you wait too long or don’t take the risk.

    For today’s world, it’s actually better to reveal part of the meat of your product at the very beginning of your promotion. Let’s say you have a YouTube video for the “Top 5 Ways to Grab Your Customer’s Attention”. Instead of doing the standard intro where you tease what will be revealed within the video, you start the clip by saying “The first way to grab your customer’s attention is…”. After the bit of info, you do the introduction and continue like normal.

    This type of marketing strategy works because viewer attention is hard to grab. It elicits an immediate response, being to consume that content right now as if it’s only available for a limited time. Maybe the consumer is interested but doesn’t want to view your video right now, or your thumbnail comes up while they’re watching something else. You need to give away a piece of info that’s valuable to grab their eyes and ears, reel them in, and keep them there for as long as possible. This opportunity is fleeting.

    Become a Customer’s Partner, not Provider

    Consumers generally want to put less and less effort into something. If you can take away some of the pain points usually handled by the consumer and handle them yourself, instead, then you’ll get customers for life. This is also going to be the future of e-commerce and direct response marketing.

    This doesn’t need to be confused with a concierge service or a live-in personal assistant. Here are a few direct response marketing examples of businesses who act as partners to paint a clearer picture:

    • Netflix reinvented the way we consume media at home. Cable TV existed, Blockbuster existed, most homes had catalogs of VHS tapes and DVDs to pop in at any moment. But Netflix took away the need to browse through an entire library that may or may not be organized. High-quality streaming movies at home with just a few clicks? Everyone loved it. And even better, Netflix learns what each profile likes: genres, actors, movies, series—anything. And with that data, they curate what you see. No homepage is the same because it’s catered to you, the viewer.
    • Todoist, the list-making app, gives you the right list for exactly where you are. Let’s say you made a grocery list. The app can bring up that exact list in the form of a notification on your phone’s lock screen when it knows you’re at the store by using location services. Other list apps do this, including built-in reminder apps on iOS and Android. Taking away the need to unlock your phone, find the app, and then find the list was all taken away. Now, you simply tap on the notification and all the information you need comes up instantly.
    •  Smart coffee makers learn the style of coffee you like and the time of day you want to drink it. This one device can make coffee as strong or light, with milk foam or black, and at 7am or 2pm. You no longer have to think about groggily going through the cabinets when you get out of bed to make a cup of coffee. This machine now does all the work for you.

    These are examples of what we have today. Imagine what we’ll have in 10 years! How automated and consumer-centric every aspect of life will be. Take this into account for our own business, innovate, and provide a glimpse of the future for your customers today. You are your customers’ partner throughout the lifetime of their product use.

    Privacy—Where’d It Go?

    Privacy is a big concern these days with people paranoid that big tech is following them to the bathroom and blackmailing them with their own content they once thought was safely stored only for their eyes. It’s a real concern, and a valid one. Why would anyone want a business following their every move and taking every chance they get to sell you something?

    This also leads into the idea of overconsumption. With your data being everywhere and always up-to-date, online businesses can sell you exactly what you want 24/7. Everything is targeted directly to you all the time. There’s no more hit-or-miss billboards grabbing consumer attention on the highway, or hour-long infomercials. Now it’s in podcasts, web ads, pop-ups, and phone notifications that have specific offers. It’s amazing and terrifying, and you better hop on board as a business if you want to stay ahead of your competitors. These strategies work because they have a clear CTA, a clear call that took a user’s private data and transformed it into a product they absolutely want.

    To be fair, it’s safer to say that privacy concerns will change, the data that’s collected will change, and people will lower their idea of personal boundaries. Data collected about you is slowly becoming anonymized, with ties to your device or network rather than you as a human-being. The future of direct response ads will continue to utilize these methods, whether it violates a person’s privacy or not. With more of it happening, the more accustomed to it the population will become.

    Slowly but surely, every consumer is being conditioned to trust big tech and businesses. And for the most part, most businesses can be trusted. You don’t want all of the nitty gritty details of a person’s life. Instead, you want information that can help you sell your product better. That’ll only grow more powerful and useful in the future.

    Is your direct response marketing business ready for the future?

    Now’s the time to start prepping, reorganizing, and collecting. And standing beside you, as your partner, DirectPayNet offers merchant accounts for all business types so you can accept payments from those newly hooked customers.

    Speak with our experts today about how we can set up your e-commerce store with all the payment tools you need to be successful today and 10 years from now.

  • The Future of Direct Response Marketing Part 1: Building the Foundation

    The Future of Direct Response Marketing Part 1: Building the Foundation

    We sat down with famed business strategist and “guru to the gurus”, Rich Schefren, founder of the automated webinar (2007), for insight into where the direct response marketing industry is headed. He gave us some great personal accounts of what makes a marketing strategy good, what doesn’t, and how he got to where is today. You can leverage his extensive knowledge to take your business to the next level.

    The first step is building the foundation, and he made that abundantly clear based on his own business ventures as well as his clients’. The basis of your product, business, and your direct response marketing campaign need to be sound. Here’s some background on Rich, how he got started, what he’s up to today, and what he’s learned along the way that’s made him so successful.

    Pioneering the “Free Guide to Get Started” Phenomenon

    We’ve all seen it, and you might even use it yourself. The “download this free book to get started” method. No strings attached, no obligations, just free content that provides valuable insight into whatever it is you sell. We now live in an age where you can create one of the lead generation landing pages with a single click. Did you know Rich pioneered that (for the most part, anyway)?

    In the early 2000s, “free” things were rarely ever free, and if they were then they didn’t provide any value. It was more of a teaser to get you to buy the product. What it had right, in regard to direct response marketing, was the sense of urgency involved. “Act now and get your first 5 newsletters for free!” That method is still used today.

    Rich wanted to entice his target audience to want his product, his business coaching services, by giving them something they could really use. He wrote and released his Internet Business Manifesto on his blog anticipating around a dozen new customers would come from it. Instead, he got thousands which reshaped his entire life.

    Are you applying the “free stuff” direct response advertising model to your own business?

    One question that has stuck with Rich from a Q&A he saw was from an online coach who asked something along the lines of, “I’m afraid to put material from my coaching program into my front-end products because I don’t want to cannibalize my program. What do I do?”

    The answer is 100% put your best ideas out there for potential customers to see, give people the meat of your product or service. This is what direct response marketing is: eliciting an immediate response from customers. What’s the best way to get an instantly positive response? By giving them something they can use, something of value. Do that and those people will buy your product looking for more insight, more depth, and more guidance because now you’ve proven your expertise and confidence.

    This Q&A was one of two defining moments that led to the release of The Internet Business Manifesto.

    Are you using the right type of motivation in your CTA?

    And not just your call to action, throughout your entire digital marketing plan. Ask yourself this question. What brought you here? What motivates you to get up in the morning and continue your business? Why do you believe in your product? Or do you believe in it, at all?

    Take it from Rich: you need sell something because you believe in it, not believe in something because you sell it. If you sell a product because you absolutely believe in the product and the benefit it has for customers, then that’s a great foundation for your direct response marketing efforts.

    When customers reach the end of your spiel, your clear call-to-action should excite them. They should feel like they’re headed towards success with your product.

    If you only believe in your products because you sell it, then customers are going to see right through it. They will see you’re in it only to make money. They’ll see that there’s no real value in the product. And with that, you won’t make a dime.

    What if you do believe in your product but nobody’s buying it?

    If you believe in the product and no one is buying it, then it’s time to look at your marketing techniques. Customers clearly aren’t feeling the same way about your product as you are, they haven’t come to the same conclusion.

    Why do you believe in your product? What events brought you to this conclusion? Whether that’s speaking to people, going places, trying products and wanting to improve them—whatever it might be, there has been an event or series of events that lead you here.

    Your inbound customers aren’t on the same path as you and your current form of marketing tactics aren’t cutting it. What do you do? Abbreviate that experience and lead your prospects through it so they can come to the same conclusion as you.

    This tactic applies to all types of marketing channels. Whether you’re running a social media direct response ad campaign, direct mail strategy, email marketing, referral program––whatever it is, this direct response marketing strategy works. You’ll quickly connect to a specific audience, provide them a clear CTA (i.e., a way to take immediate action), and your small business will see a massive return on investment. Just look at what The Internet Business Manifesto did for Rich. Conversion rates through the roof. Or infomercials, albeit they have much more air time and consumer attention than a simple Facebook ad.

    This was the second defining moment that led to the release of The Internet Business Manifesto.

    The Internet Business Manifesto—A Prime Direct Response Marketing Example

    Rich’s report is one of the most perfect examples of direct response marketing. Ironically, it’s no longer a free downloadable PDF. Instead, it’s an e-book you can find on retailers like Amazon. But that doesn’t mean giveaways and digital advertising in the form of free content isn’t a marketing strategy that works (at the very least for brand awareness). We keep bringing up this report because this was the game-changer for Rich.

    The two previously mentioned foundation strategies for direct response marketers are what he combined in order to release this report, also leading to its incredible success. And his, of course. Believing in the product and putting some of his best ideas into a free PDF for anyone to read brought him thousands of new clients. Those clients connected with The Internet Business Manifesto and could apply its content to their own lives. They would make more money if they saw business the same was as Rich, and that led to unparalleled success.

    This report is the foundation of his success. But looking closer, the reasons why he released it are the real foundation. Like the book is the brick and the reasons are the mortar. You need both: a quality product and contagious, truthful motivation.

    Don’t expect the same results for your business right off the bat. Sometimes, all you might get are a few extra phone numbers. But follow up with that contact information, keep your response rate high, and soon you’ll see higher conversion rates.

    Top Habits of a Successful Businessperson

    There are certainly habits and characteristics all successful businesspeople display. Some of the traits can be seen by what not to do instead of what to do.

    The most common mistake is creating a business around the ideal you.

    Most entrepreneurs are looking beyond right now and far into the future of their business. They see themselves as successful people who act and speak a certain way. But rarely does that reflect who they are right now.

    You cannot form a successful business around a mythical version of yourself. It’s not believable because it isn’t real, and because of that you won’t get followers.

    Why is this the case? Because personal change is really difficult. How many times have you told yourself that you’ll stop smoking, or you’ll hit the gym at 6am, or you’ll eat healthier? How many times did you actually do it? Now apply that to your business. It’s unrealistic and setting yourself up for failure.

    Here’s an example: Rich is a perfectionist. He knows this, especially when it comes to building presentations and products. No matter the length of time given, he would spend every single second of it nitpicking and perfecting the product. Knowing this, his marketing strategy has to be one in which every product he creates and sells is one created live.

    How does this make sense in terms of the “mythical you” syndrome? Because the product will be sold first and adjusted later. There’s no time to nitpick and try to craft this incredible, flawless product because it would never be created. Instead, he promotes a product created live, analyzes customer reaction, and adjusts it later to meet the needs of the customer.

    Personal motivation needs to be in its proper place.

    Before, motivation was aimed at the CTA and your marketing efforts. Here, we mean your personal motivation—the thing that drives you to wake up in the morning and go. What is it?

    Successful businesspeople know what motivates them and apply it properly.

    Another example from Rich: he is not motivated by money. Therefore, it doesn’t make sense for him to attend weekly financial meetings about how they can reach a certain figure by the end of the month. He doesn’t care about it enough to make an impact and putting himself in that position will only degrade his interest in the company. Instead, he created a team of people who are motivated by money and who will do all they can to meet those financial goals.

    Interested in gaining more insight by the famed Rich Schefren?

    Here, we conclude Part 1 of our insight into the future of direct response marketing by covering the foundations of a successful business by giving you marketing tips that guarantee measurable results.

    Part 2 of our interview with Rich is on its way to your eyes and ears, and with it you’ll gain catalogs of new and existing customers in demographics that might surprise you. In the meantime, you can digest what’s been uncovered so far and start applying it to your business. Direct response marketing and the nature of e-commerce is dynamic. It’s important to stay up-to-date with the latest industry news and insight, which we’re more than willing to provide.

    And, of course, an online business doesn’t mean much of anything if you can’t process payments. Contact us about getting a merchant account that can handle your increased sales once you apply Rich’s advice.

  • Timeline of a Chargeback: The Merchant’s Guide to Processing Chargebacks

    Timeline of a Chargeback: The Merchant’s Guide to Processing Chargebacks

    The timeline of a chargeback is a tricky one and tends to favor the customer. It involves all parties: customer, card issuer, credit card network, acquirer, and finally the merchant. Merchants who ignore chargebacks or fail to respond in time will lose revenue, increase their chargeback ratio, and take one step closer to account termination. For these reasons, chargeback management is a high-risk merchant’s best ally.

    Steps for Chargeback Processing

    There are several steps to the chargeback processing timeline, and it starts long before you, as the merchant, get wind of the activity.

    Step 1: Customer Requests a Refund from their Issuing Bank

    For a variety of reasons, customers will request a refund for a charge they see on their debit or  credit card statement from the issuing bank, the underwriter. That means they’ve skipped over the returns and refunds program you offer and went straight to their issuer.

    The issuer is then responsible for reimbursing their client the disputed transaction amount. But of course the funds will never start and stop at that financial institution; that money will eventually be requested or taken from you, the merchant if the request is valid.

    Before dispersing those funds, however, the issuing bank will review the cardholder dispute. During this process, they make the call that the chargeback is valid or invalid. Invalid means there was no fraud, valid means the dispute will continue forward.

    If the chargeback is valid, the customer is issued an immediate refund for the disputed amount.

    Step 2: Handing Off the Chargeback from Issuer to Merchant

    The chargeback goes from the issuer to the card network to the acquirer. This is true for Visa and Mastercard chargebacks, which are the most common. If the process goes through the American Express or Discover, then it’s a bit different. Those card networks act as both the issuer and acquirer. In this case, processing is more streamlined.

    In any case, the acquirer receives the chargeback and reimburses the issuing bank those funds on behalf of the merchant. During this trade-off, the chargeback will incur a load of fees: chargeback fees, network fees, interchange fees, and processing fees. The disputed amount already contains fees paid by the merchant during the original transaction. These are extra fees on top of that, meaning if the chargeback goes through, then the merchant pays the full original amount plus all these other fees. That equals major losses if chargebacks add up, which is exactly why it’s imperative that you respond to every chargeback dispute possible.

    After the acquirer receives the chargeback  and reimburses the issuer, the merchant receives a notice imploring them to submit evidence to fight the dispute. The notice will have instructions for next steps about submitting all evidence related to the disputed transaction so you can prove you’re not at fault and shouldn’t have to pay.

    Step 3: Responding to the Chargeback

    You should respond to every chargeback. If you’re receiving a lot of requests, then you should consider implementing chargeback prevention techniques. You shouldn’t assume that every dispute equates to lost revenue for you because you can absolutely win if the chargeback is fraudulent.

    In your response, you should compile all relevant material and additional information from a variety of sources, like the payment processor, card network, shopping cart provider, and your own customer service or CRM. Items like GPS, shipping info, and device info can help to confirm the identity of the cardholder. Past transaction history with that card/customer, customer support transcripts, and transaction processing date will also help verify the customer-merchant relationship.

    Your response must correlate to the chargeback reason code used in the dispute, otherwise your efforts will have been wasted, and sent to the acquirer. This process of challenging the cardholder dispute is called representment.

    The acquirer sends the response to the card network, which forwards it over to the issuer.

    Step 4: Making the Final Decision

    If you didn’t respond to the chargeback at all, then you lost the funds plus incurred fees. If you did respond, then the issuer will review your supporting evidence and make a dispute resolution.

    If your evidence disproves the chargeback claim, then you win and the refund is denied. In this case, funds from the issuer are taken by the card network and given to the acquirer. The acquirer puts those funds back into your account and it’s no harm no foul.

    If your evidence doesn’t convince the issuer, then you lose. That means the customer gets their money back and you pay for it (and more).

    Additional Possibilities

    Let’s say you win but the cardholder is unhappy and disputes the verdict. For some card networks, it’s considered a second chargeback; for others, it’s called pre-arbitration. Either way, it goes through the same process outlined in Steps 1-4.

    If the merchant wins again and the cardholder is adamant about getting their money back, then the dispute reaches arbitration. You, the merchant, are charged $250. The card network hears both sides of the chargeback story and ultimately decides who wins. If you win, then the issuer refunds your $250. If you lose, then you lose the $250 fee along with some fees.

    The Length of Time the Chargeback Process Takes

    If you’re one of the many who wonder, “how long does a chargeback take?”, then we have bad news: there’s no clear answer. That’s because each chargeback reason code has its own timeframe and the process of disputing a chargeback can extend that time period.

    What is the chargeback time limit?

    The chargeback time limit is the window of time in which a merchant must respond to each step of the chargeback process. Every deadline is strict, so waiting too long will result in an automatic loss for you. These time limits differ depending on the card network.

    For Visa chargebacks, the time limit for each phase is 30 calendar days. For arbitration, the deadline is 10 days.

    For Mastercard, the chargeback time limit is 45 days for all stages.

    These dates correspond to the initial chargeback processing by the bank (CSBD) as well as the day arbitration is presented.

    How long do customers have to file a chargeback?

    120 days is the general timeline for cardholders to request a refund from their issuing bank. Then, the customer has 45 days from CSBD to initiate arbitration if they are denied the refund.

    4 months is quite a while for a customer to wait to start the chargeback process, and it can seriously hurt the merchant. If so much time has passed, defending evidence might be lost or you might be take off-guard and ill-prepared to handle a chargeback at that time.

    Keep in mind that 120 days is the limit for customers to file a dispute with the issuer. A few more days may pass before it reaches you.

    Methods to Avoid the Chargeback Process, or at Least Be Prepared

    The chargeback timeline is long and tedious, so the best solution is to avoid billing disputes altogether. But not all chargebacks can be avoided, so the second-best thing is to be prepared.

    Use Customer Verification Tools

    Tools like 3D Secure, AVS, and CVV are great additions to the checkout experience and can be implemented via plugins for your payment gateway. They act as additional steps to confirm the identity of the cardholder, which helps avoid chargebacks and fraud altogether. Attempts from fraudsters will result in declined authorizations, no authorization, cancellation of the transaction, and credit not processed.

    There are also fraud tracking tools that help you collect data related to the customer’s device via device fingerprinting, GPS, and other information. This helps to further confirm the validity of the transaction and should be used as compelling evidence if you go through the chargeback dispute process.

    By using these prevention tools, you can eliminate the risk of fraudulent processing of transactions, which means if chargebacks do continue to come in, then it might be due to processing error like duplicate processing or processing the incorrect currency. Otherwise, customers might use friendly fraud against the retailer, claiming defective merchandise or attempting to cancel a recurring transaction.

    Update Your Return and Refund Policies

    A lot of the time, customers simply don’t like your refund policy, so they skip over your customer service and head straight to their bank. By updating your terms, you can prevent chargebacks from happening. You may see an increase in returns and refunds, but you can eliminate the refund fee from your payment processor, and you can avoid all the incurred fees from a chargeback.

    A clear refund policy is helpful as evidence, too. If it’s easily accessible on your site and shared via email to your customers or attached to their order confirmation, then you can submit it as evidence.

    Collect and Organize Customer Data

    You should save all communication transcripts with customers for at least 1 year to be used as evidence if needed. Using a CRM that helps you organize customer data and documents can greatly influence your ability to win a chargeback dispute or avoid the chargeback timeline entirely. Previous orders, cardholder’s account number, communication attempts, delivery address, and payment details are great forms of evidence.

    Customer complaints should also be addressed immediately, even on 3rd-party review platforms. Your attempts to alleviate concerns customers have with your business work wonders towards your compliance toward disputes. You can also use this data to view patterns in customer complaints, then use it to make internal adjustments that help avoid those issues in the future.

    The timeline of a chargeback is both long and constricting. The best solution is to prevent chargebacks and monitor fraud.

    DirectPayNet provides merchants with merchant account services that include chargeback prevention and fraud protection so you can avoid the chargeback process.

    Use this timeline of a chargeback to your advantage and prepare your business for the possibility of a chargeback happening. Contact our customer support team to protect your business further.

  • Expansion Part 2: Strategies for Maximizing Revenue When Expanding into New Markets

    Expansion Part 2: Strategies for Maximizing Revenue When Expanding into New Markets

    Business expansion into new markets is more than allowing your site to accept payments. We covered that in part one. To sum it up, you can add Dynamic Currency Conversion (DDC), open a Multi-Currency Merchant Account, or incorporate in the region.

    Now that you’ve prepped your store, how can you be sure of customer interest? And if customers in that region are already interested, how can you maximize that revenue? Here, in part two, we’ll cover some marketing strategies and growth strategies that maximize revenue when expanding your business into a new market.

    Determining Your Readiness for Market Expansion

    As we mentioned in part one, expansion isn’t right for every business. Some businesses aren’t yet ready for it and others might be perfectly situated in their current market. So, here’s how you can tell if your business is ready for expansion.

    You receive non-local traffic.

    A sure-fire way to determine whether your business is ready to expand into a new market is if you are already receiving traffic in that market. If you’ve got the traffic, you know there’s customer interest.

    Even if you don’t have traffic yet, expansion might still be a good idea for your business. You can do some market research to see if people are buying products similar to yours or in the same industry as your business. Never go in blind.

    You have the resources.

    Expanding can be a risk. Your business should have the financial resources to overcome any failed attempts—just in case. If you choose to incorporate in the new region, then you’ll want to be making at least $100k in that region. Incorporation is costly and not the best choice if doing so would eat a significant chunk out of what you’re making.

    Even if you don’t choose to incorporate, you should consider the cost of shipping (if you sell a physical item), translating your site, and customer service agents who speak the language of that region. These are just a few examples of what you’ll want to consider when expanding.

    You have the capacity to expand.

    Expansion takes time and effort. If you’re bogged down with sales, responding to current customers, or general business operations, then maybe it’s best to consider expansion when you’re a little more prepared. This isn’t just about money and funding the expansion, it’s about having the capacity to cater to the new area.

    You shouldn’t open up in a new location and ignore the new store. That sets you up to receive a bad reputation and even chargebacks. Instead, make the time or assign someone to take care of this endeavor properly.

    Expansion also isn’t typically appropriate for startups and similar types of business unless you know for a fact your products will sell. If you can ensure this, reach your target audience, and have the capacity to expand, then go for it.

    Strategies for Maximizing Revenue

    As a small business owner, you’ve decided that international expansion is right and your company is ready. Great! Once you get your payment processing situation sorted out, you can focus on how to maximize your revenue.

    Do the market research.

    See what people are buying, who’s buying it, and how they’re paying. Making your online store available in an area doesn’t mean people are going to flock to it, especially if you’re not selling or promoting the products they’re interested in. Instead, do some market research, build on trends, and have a marketing plan based on market analyses that matches your new business growth goals for the area.

    Use social media and content marketing.

    Social media platforms are great tools to determine the interest a particular demographic has for your brand. It will help you build some brand awareness, understand what customers respond to best in terms of products and advertising, and you can use it to see what similar successful businesses are doing in the area.

    If you’re expanding into a new market and there’s no competition, then social media can build up a community around your brand. You can use it to test what your followers like and cater to the demographic that responds best. And this is a good point: the demographic you sell most to in your local market may not be the same in another market. Don’t make assumptions; do the research and have a business plan/expansion strategy.

    Content marketing is a good way to drum up business and excitement as well. Newsletters, blogs, social media posts—these are all good, safe, and inexpensive ways to keep your new customers informed and aware.

    Raise the price of the product.

    The first two methods are pre-emptive strategies about understanding your customer base, connecting with them, and getting a feel for the landscape. Now we’re at the point of strategizing for maximum revenue by actively changing the price of your existing products in the market.

    Price test in different markets. It’s best to start high and decrease the price. As you might imagine, there is usually a more negative reaction when customers see a price hike, and you don’t want to scare off your existing customers at the possibility of gaining a few new ones. Instead, enter the market with higher prices and lower it according to customer reaction. Customers in certain regions are less price-sensitive than those in other regions, so price testing can help you maximize revenue.

    In part one we talked about currency accounts and incorporation. These two allow you to price test, DDC doesn’t. And raising your prices doesn’t necessarily mean doubling it. If you sell a new product in the states at 20USD, you could sell the same one in the UK for 20GBP.

    Take note that some regions require you to lower your prices, like a few in Europe. You don’t have to operate in those areas if you’re not getting any traffic, but be aware of requirements in the regions you do want to operate in.

    Offer the right payment methods.

    Buying with a credit card is hugely popular in North America, but that’s not true for every country or economic region. Customers in Germany, for example, prefer to use debit transactions. Some areas might want e-checks, ACH, or some other type of local payment method.

    Offer the payment methods that your target customers prefer. They’ll be more willing to make purchases on your site if they can use a mode they’re familiar with.

    Test your shopping cart.

    Have someone test your shopping cart in the new market. Maybe that means you hire someone, contact family or friends, or use a VPN—whatever it takes, just do it. If your shopping cart isn’t functioning properly, it will deter potential customers from making a purchase. Broken shopping carts make people think your site is attempting to commit some type of fraud and likely will never return to your store. You can avoid this by testing out your cart before making it available to the public.

    In the EU, for example, your payment gateway is required to have 3D Secure implemented. This is a process to verify the identity of the customer. Make sure you tidy up the checkout flow so it doesn’t disrupt the customer experience too much. Of course, people in the EU are used to taking this extra step, but you can still make it as pleasant as possible.

    Also test out delivery, if you’re delivering a physical product. Find out who makes these deliveries, provide a tracking number, and give an honest estimated arrival date. You’ll also want to figure out customs requirements.

    For digital goods, make sure customers can download the files or log in to your site. Some regions have regulations regarding site privacy and accessibility. Read up on this and implement what you have to in order to provide the best experience for your new customers.

    Translate your website.

    It’s as simple as that. Translate your website into your target market’s language. Customers will appreciate it and you’ll gain a lot more business simply because your site is readable. If it’s a market you’re really interested in, then don’t put up a fight about spending a little to have it translated properly (i.e., not just in Google Translate). Customers want to see that you understand their culture which they’ll respond positively to.

    Put Your Marketing Campaigns to Good Use with a Payment Processor Who Can Handle Expansion

    Your marketing efforts mean nothing if your shop can’t process the payment. Go back and read our part one, familiarize yourself with the options available, and work with a partner who can guide you through it all.

    Pricing, currency conversion, product delivery, shopping cart—it can all lead to chargebacks if you don’t spend some time catering to the customers in that new market. Don’t put your own business needs above the customer’s for the sake of profitability. With proper research, you’ll gain a competitive advantage, increase sales, and have a business model that works.

    The team here at DirectPayNet is well-versed in business expansion. Give us a call today and we’ll answer any questions you have as well as set you up with the right payment solution to scale your business.