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Category Archives: Professional
What’s next for PayPal, Google Checkout, and Amazon FPS?
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The war for the title of head payment processor extraordinaire wages on with exciting new advances in the way we digitally transact. The basic premise has always been to give merchants the tools they need to accept payments online, and in turn a fee is extracted for the service. Consumers, on the other hand, can choose which form of payment they would like to use – for free – as long as they don’t go down the path of leveraging credit or transferring money to others.
PayPal, Google Checkout, and Amazon FPS all now charge roughly the same fees and accept the same major credit cards we care about. How the big 3 differentiate themselves consist of the following:
- The size and scope of their networks.
- Leveraging their existing technologies.
- Partnerships and acquisitions.
- Merchant tools.
- Consumer incentives.
- Being first to market with new features.
- Customer service.
- General branding and marketing.
There are some fundamental differences in services and strategies as they compete for your virtual wallet, but it is a tough battle with many new entrants whittling away at their percentage.
What has the battle ground looked like so far?
PayPal
PayPal was indeed first to market when it came to offering merchants and sellers a means of transacting online. Customer service was notorious at first, and even led to the creation of PayPalsucks.com. But those days seem like forgotten history because they are still cruising right along with annual revenue approaching $3 Big B’s a year. Having eBay as your Daddy, and BillMeLater as your baby, doesn’t hurt matters, and they even have little old VeriSign thrown in there for good measure. PayPal allows you to sign up for a credit card (Mastercard), establish an ACH account, send and receive money, and take advantage of what really appears to be the best, full suite of tools available for invoicing and running reports.
However, there are still issues with customer service and verification of funds. And for many merchants (especially the larger ones), the idea of not being able to capture your customers’ data, or control the checkout process and corresponding branding, is unacceptable.
Google Checkout
Google Checkout is still in the wings integrating their payment processing service with AdWords and Search. Merchants see a benefit in search relevance, and consumers can enjoy buying items right there in the browser. As mentioned before, fees are basically the same as PayPal and the rest, but Google provides additional value for not-for-profits. Their initial selling point of maintaining greater privacy is really a mute point, and they no longer offer discounts through AdWords. I think it is safe to say most merchants simply provide Google Checkout for search marketing purposes, it is easy to implement, and because some buyers habitually prefer it.
A big black eye for Google Checkout has always been their mediocre customer service, and the occasional horror stories of law abiding merchants having their accounts suspended for what looks like no good reason. But this also happens with PayPal. I believe the reason why Google has not taken the lead in payment processing is because it hasn’t been their core focus, and the haven’t made any direct strategic acquisitions in this area. Furthermore, their interface is not intuitive enough, and they have not evolved as quickly as PayPal and Amazon. But they are clearly a contender in the mobile search and mobile operating system market, and this could give Google a competitive edge.
Amazon FPS
Amazon FPS came in to the mix swinging with a solid strategy based on catering to the needs of developers and providing more flexible micropayment processing. Oh, and let’s not forget their network! While PayPal did have micropayment options, it seems it wasn’t well known or needed. Amazon really put their money where their mouth is by backing it up with a Sandbox, a Developer Forum, and a level of respectable transparency and open conversation. Couple this with their hosting services like S3, and you’ve got a nice little package to launch an ecommerce website that is flexible and scalable.
Amazon’s real problem appears to be a lack of awareness in an already competitive market. It faces a difficult time convincing merchants, and their contracted developers, that there is greater value in using them. Also, it is a little more complex to use than what the average merchant is accustomed. However, the added flexibility and accompanying web products do attract tech startups and sophisticated, larger merchants, who are looking for a flexible and robust payment gateway. I wouldn’t be surprised if we see a mobile device come from them.
Of course, PayPal isn’t taking any of these forays by competitors laying down. They were the first to release a mobile application for the iPhone, power Twitpay, and they even got in early with Facebook by handling the ad purchases on the Facebook network. They’ve also taken cues from Amazon by reaching out to developers through several avenues, including their annual conference, PayPalX, as well as giving further access to their code.
What does the future of ecommerce look like?
Mobile
In Europe and Asia, many customers transact and move money via mobile devices and/or pins. Here in America we are seeing companies like Obopay emerge and make great strides. Not only does Obopay have deals with Nokia and Mastercard, but they were also selected as “2010 Technology Pioneer by the World Economic Forum.”
Instead of moving away from that old trusty credit card, Square counted on the large percentage of people that can’t kick the habit. Two problems exist here: one, you’re asking users to carry an extra device, albeit a small square, and two, as of now it only works with iPhone and Android devices – RIM’s operating system, which Blackberry uses, still represents 36 percent of the U.S. market. Security, despite what they say, is also a big concern.
Mobile companies like Intuit’s GoPayment and VeriFone work across most all operating systems, and they also provide devices such as credit card swipe machines and terminals to aid in the transaction process. Where they fall down is the lack of web-based tools for merchants, and they don’t seem to be out playing with the online community of developers.
Where are the competitive advantages in the mobile market?
If you’re a company deciding how to embrace the future of mobile payment processing, you need to consider:
- Brand/Creative Control
- Affordability
- Ease of Use
- Compatibility
- Network/Search
- Supporting Products and Services
- Continuing Innovation
- Customer Service
Putting yourself in the shoes of merchant, you simply want to know the fastest and most affordable way to get your branded shopping cart on the website, which will also work in the mobile environment. Another company – Unity Mobile – is trying to do just that. They’ve got the branding, affordability, and ease of use side down, as well as the compatibility with both mobile devices and websites. They’re even working with barcodes. Why haven’t you heard of them? My guess is their lack of a network, not working with outside developers, along with no supporting devices. It’s cool that you can automagically create a mobile ecommerce site, but it is also relatively easy to use CSS on your existing website to accomplish the same.
Other Contenders
Authorize.net also provides merchant services and merchant accounts, and their payment gateway is preferred by many ISO and MSPs because of their superior processing capabilities and fraud protection. They’ve done an excellent job of comparing their services to those of PayPal and Google, so I won’t rehash them all here. But suffice to say, their niche has been larger merchants who don’t need access to a 3rd party network because of their specialized offerings. They do care very deeply about keeping the customer on their branded website, as well as giving them a safe and reliable transaction experience. The next big factor is time in which it takes to get paid. Authorize.net is much quicker than PayPal or Google. Incremental fees are not as important as branding and security, but nevertheless they are competitive with the bigger 3. Where your additional costs come from are building out and designing your own ecommerce platform. Finally, if you’re in the business of building your customer database, well, PayPal and Google aren’t going to help you do that. As said before, they prevent merchants from accessing customer email addresses.
Meanwhile, American Express recently purchased a company by the name of Revolution Money. Their go-to market strategy has been to tout the added privacy of a nondescript “credit card” that is powered by a personal pin. It appears they have signed on quite a few impressive merchants, but how large the network actually is would be anyone’s guess. Unless they come up with something incredibly innovative for merchants and/or consumers, they are going to have a tough road convincing either party they are worth the effort.
If you ask Steve Jobs, the new battleground is combining application development with mobile search and compelling advertising. If you find what you want, and you need to buy it right then and there through your mobile device, great! The consumer can have the option of using a pin, credit card number, or something else entirely. Who knows? Maybe the banks will start issuing their own phones or mobile apps that work any where. Either way, there will always be a manner of subtracting a fee for the convenience of using virtual money. We can be sure merchants will have to pay to be featured on Apple devices, browsers, and networks.
Conclusion
It is an interesting game with many different variables, but one thing is clear – neither PayPal, Google, or Amazon will be going away any time soon. Apple will further enter the market just as we’ve seen them do with music, movies, podcasts, and applications. This is good news for the merchants and consumers because we benefit from increased competition. PayPal and Amazon will always be at the mercy of search, but Google needs them around, or they may come off looking like an out-of-control monopoly. Each of the Big 3 will continue to acquire companies to enhance their product and service offerings. Customer service, fraud protection, and brand control must be a priority.
Banks will still be involved, and I suspect their fees will stay relatively the same or trend downward. The big What If? is whether they can get rid of the middle man. Hints of this come when companies like American Express scoop up alternative payment processing companies like Revolution Money. Historically, banks have lagged behind innovators like PayPal, Google, and Amazon, but I wouldn’t completely rule out a merchant play of some competitive force. In order to succeed, it must not only pass considerable savings and functionality on to the merchant, but also reach consumers at the buying stage. That’s a tough order, but they’ve got the motivation. After all the payment gateway is a super highway just begging for a new toll, right?
In a perfect world, we’d all have access to open source software that allowed us to connect merchants and consumers in every customizable fashion imaginable without paying a fee. This day may come, but issues of security and greed will always be corrosive factors. Meanwhile, I’m still using my credit card for online purchases because, somehow, I feel a bit more comfortable using someone else’s money in the digital exchange of dollars, even if I do have to pay a fee.
Simply Web
Many small and medium-sized businesses fall in to the trap of making their websites way too bloated, difficult to change, and expensive to manage.
Personally, I’ve been using WordPress as a website solution for quite some time. Why? Because it is powerful, flexible, and cost-effective. So when Charleston artist, Kat Hastie, mentioned she needed a website refresh, I naturally suggested it.
Her original website had been designed and managed by a local Charleston marketing agency. While it did the job, she had to pay for any changes such as adding new images (paintings), moving navigation items, and/or editing text. Furthermore, she had no means of posting News items to inform site visitors of upcoming exhibitions or new works of art.
Now all of these before mentioned headaches can be accomplished quickly and easily on the back-end with the WordPress Content Management System. In addition, she can take advantage of new plugins for ecommerce, social channels, media galleries, search engine optimization, and so on. The entire website is completely scalable if the artist so chooses. Even then the process will be kept simple and streamlined because, well, that is how she wants it.
The design itself is simple but effective.
Use of the artist’s signature as the background speaks to her unique character and identity. It is simple but effective because it is hers and only hers. This is her website – welcome!
In regards to color, many artists and museums have gone to white as a means of making the space feel light and lit. It works in certain situations, but there is no denying that black makes colors POP. It also focuses your eyes on the work. Considering that many of Kat Hastie’s paintings are quite large and could cover an entire wall, they aren’t really meant to be forced down to the view of a computer screen. The black helps give dimension and texture that is otherwise lost in the digital realm.
The homepage uses imagery to connect the artist with the work and offers few entry points. Of course, the images can easily be swapped out and the pathways, or links, changed. In further keeping with the simplicity, there is only one Feed from the News section pulled on to the homepage, which constitutes the latest post to that Page. Call it a blog post if you want, but either way it acts as a separate and indexable web page with the ability to add links and accept comments. There could be more News items there if needed, but again, for now that is the way the artist wants it.
The media gallery is slick and offers a few different ways of viewing the artist’s work. Scroll through the thumbnails at the top and hover and click on any one you want. You can then click to view the image at full size. Mouse over the slideshow at any point to pause one of the paintings for further study. On the back-end, the images are uploaded, saved, and served at a consistent size. They can be added to any one of the sub navigation sections as well as the main Work gallery. The titles and descriptions are fully editable along with the images because they each act as a Page. Changing the order of the images is as simple as dragging and dropping them in to place.
And I know this is so fundamental and such a simple function of the Gallery, but so often Flash sites get this terribly wrong. Each one of the paintings has its own unique url so it can always be referenced, emailed, and shared. So simple, but so often overlooked!
Finally, the artist’s website is equipped with Google Analytics for tracking visitation and measuring offline and online activities. This will help her determine what events or exhibitions are most successful, paintings people find most interesting, what cities visitors are coming from, and even what other websites are referencing her.
At the end of the day, the artist got a website that works for her, and she didn’t have to spend a ton of money building it. Did I mention she is also saving a bundle on hosting? Sounds complex, but it is really quite simple. ;~)
The Fine Line: Negative vs Positive Messaging
I was recently in Charleston, SC talking with a friend about the effectiveness of negative vs positive messaging. A local politician lost his son in a drunk driving accident, and his loss compelled him to try and educate teens on the hazards of getting behind the wheel after a few too many. One component of his campaign relied on the shock value of a vehicle destroyed in an accident. He towed it around to local schools for children and adults alike to see. His actions bothered my friend who happens to be a very protective and responsible mother of two.
These sights are always chilling; and the question is whether they are really effective? Do people tend to block out negative messages, which ultimately make them unproductive?
Marketing and advertising often rely on fear as a motivating factor. The solution to that fear is then presented – the product or service being offered. There is a fine line, and the producers of this commercial walked it admirably.
Art Reception
My mother, Charleston artist Kat Hastie, is having an art reception at Bin 152 on Wednesday night at 7pm. For those not familiar with the space, Bin 152 is a new establishment on King Street owned by Patrick and Fanny Panella. The Post & Courier recently published an article on their creative mix of wine, cheese, and art.
In preparation for the show, the artist asked me to put together an invite that combined some of her recent portrait work. Now I am more of a marketing strategist and writer than I am a designer, but I was happy to oblige. Nothing like saving a few duckets when a family member is capable enough. I’m also in the process of redesigning her website. I’ll announce that soon enough, but for now here is the invite – in one of its forms – with a quick overlay to hit you Charleston folks with the pertinent details once again.
Come on out, we’d love to see you there!
Lemonade
I’ve been reading Seth Godin’s blog going on for what I believe has been 5 years? Regardless, I rarely, if ever, regurgitate pieces of media that I pick up from there. However, this post is an exception. The following video hits home for so many people in the marketing and advertising industry right now. It certainly begs the question, do you love what you do? Furthermore, I don’t think it is too much to ask that the agency or freelance person managing your account to also love what they do. If I’m looking to an outside agency to manage my brand, I want them to be both capable and passionate.
Super Bowl
First off, I think most of us will concur that Sunday’s game was pretty fantastic. Always great to see two teams evenly matched. Early on, I was impressed by Peyton Manning’s ability to drive the ball down the field in an efficient manner, and I was ultimately surprised to see the Saints come back so strong.
Regarding the equally captivating ads, my favorite has to be Google’s. Leave it to them to enter a new medium and deliver an advertisement that, like their technology, is simple on the surface but far more powerful underneath. Plus, who doesn’t love a good story?
Say NO to Will Call
Technology: Event Marketing & Management
“Say NO to Will Call”
by Robert Payne
Have you ever found yourself standing in a Will Call line that stretched around the block, while enviously observing carefree patrons stroll up to the Box Office, and thought to yourself, “this is what I get for buying my ticket ahead of time?” When it comes to concerts and events, there is often a clear disconnect between the ability to register for events online, and the clunky procedure put in place for when you arrive. Are pre-printed tickets the end all be all, or have we evolved beyond their physical constraints? And as marketers, are we losing out on a multitude of opportunities that digital media affords us when it comes to planning and marketing an event?
Connecting with Customers
I think most marketers out there would agree with me when I say, now more than ever we are expected to do more – and often times with less. For a lot of folks out there, events and event marketing are the best means of getting ahead of the pack. It is a chance to demonstrate your unique capabilities, align yourself with strategic partners, build a collective conversation about your brand in both online and offline realms, and ultimately forge deep and meaningful relationships with prospects and customers. I know because I’ve done it.
Practicing What We Preach
There is one thing that has always been core to the products and services we provide at Twelve Horses. We practice what we preach. Ever since we launched our ticketing system, we’ve been putting it through its paces in real world scenarios. Sure, clients like the Las Vegas Monorail, Mountain Sports International, and the PGA’s Legends Reno-Tahoe Open use it for transportation and sporting events, but we’ve also used it for a few of our own. What do I like about it?
Keeping Control of Your Brand
For starters, Twelve Horses Ticketing is slick because I control the branding of the event. So many event management software companies have the habit of inserting their brand all over your event. Not so cool. Whether it is the event site, confirmation emails, digital or printed tickets, kiosks, or coupons, I get to control what they look like. If I bring on a new sponsor, or devise a new promotion, I simply log in to the ticketing platform’s content management system and add them. While I’m there I can see how many tickets I’ve sold thus far, the money made, and even create a handy report if the boss wants to see how I am doing.
User-Friendly
Meanwhile, attendees easily cruise through the registration process instead of getting taken offsite to some weird and seemingly unaffiliated payment system. Once they hit Submit, the ticket immediately shows up in their inbox. Sure, they can choose to receive their tickets in the mail if they want, but all they really have to do is print them right at home. Done deal. The 2D barcode that is affixed to each ticket contains all the information the registration system needs to know. In fact, I can even scan the barcode right off their cell phone screen, input their unique code, or look them up by name or credit card. “Sir, Madame, you’re good to go.”
Adding Value to Your Sponsors
As any event marketer worth their salt knows, another way to build a great event is to attract worthwhile sponsors and partners. But we can sometimes struggle to ensure we give them the value they deserve. On top of making sure their branding is on every communication channel the attendee touches, you can also use the ticketing system to orchestrate promotions and lotteries. How about give each attendee a coupon good for a free drink at a local eatery? Or 20% off their next purchase of an applicable product? You can use the lottery system to award one or many lucky individuals with a compelling prize, or put it to work to place people in groups for educational exercises. As you can see, there is a lot of flexibility to customizing your event.
Redemption is Mine
In the end, how did we do? The reporting module is super handy for analyzing redemption. If you used any discount codes then you can see how those performed. If you had unique groups then you can see how many came. In addition, you may want to see which kiosks or mobile scanners registered the most attendees. This information is useful for determining which entrances receive the most flow and at what times, or which day and what presenters were most popular. The scenarios are endless. Of course, we would prefer if you used all of our technology, but if you don’t, and you want to export any of the data or contact lists to be used somewhere else then you can easily do that as well.
Putting on a successful event takes a lot of work, so the last thing you want to deal with is a lot of disparate technology that is difficult to use and doesn’t do what you want. None of us want to be hampered by our event management software any more than we want to stand in a Will Call line.
For more on Twelve Horses Ticketing visit www.thtix.com
Choosing a Longboard: Interview with Legendary Surfer, Shaper, and “The Endless Summer” Star, Robert August
Any avid surfer would agree there is no such thing as having too many surfboards. Different lengths, widths, rails, tails, fin configurations, and composites are all factors that affect the way we ride and can be adjusted depending on the particular wave conditions. It doesn’t matter how big of a shredder you are, there are days when it is going to be small, mushy, or you simply want to mix it up a bit, and having a longboard in your quiver just makes sense.
But if you are like most surfers who don’t have a bottomless board budget, picking the right longboard can be a daunting decision. To confuse matters, the surf shaping and manufacturing industry is highly competitive with many different options. You’ll find well-established outfits with deep rooted histories backed by brand names who have obtained legendary status, progressive companies with unique business models and environmental practices, and larger corporations that produce a multitude of models in factories overseas. At the end of the day, you want to be stoked with your decision as you look forward to a long relationship with what could be considered to some surfers as another member of the family.
So how do you narrow it down?
To help clarify questions that I had (and I suspect you will as well) when it came to choosing your first longboard, I turned to an individual who undoubtedly has been and continues to be an enormous influence on the evolution and expansion of surfing, Robert August.
I still clearly remember seeing my first surf film, “The Endless Summer.” Even though I was only 12 years of age, I knew what I had witnessed was the embodiment of the stoke, awe, and allure of surfing that hooks us all for life. Watching Robert August and Mike Hynson explore the world in search of waves made my life feel small, but it opened my mind to the endless possibilities.
August has come a long way since then having worked on several other films, established his own line of surfboards, and benefited many important charities. In case you had any doubts, he is still tearing it up.
With over 50 years of surfing experience, let’s just say he knows a few things about buying a longboard.
“Dear Subaru” Advertising Campaign
Carmichael Lynch put together a very bold and clever advertising campaign for Subaru, and it features a photograph that I took of my very own Subaru Outback after I ran it headlong into a boulder going 60 mph. I walked away relatively unscathed, but the car wasn’t so lucky.
This Subaru was 1 of 5 that I have thus far owned in my lifetime. The reasons why I walked away from the accident has much to do with my predilection. When I bought my first one it was for the All-Wheel-Drive and good gas mileage. I would later discover other positive attributes, along with the company’s attention to manufacturing efficiencies and the environment.
With the “Dear Subaru” campaign, Subaru is counting on there being more people like me who have a story to tell. It doesn’t have to be an accident like mine, but anything that demonstrates your affinity for driving their vehicles and the places they take you.
Carmichael Lynch and Subaru are pursuing a multi-channel marketing strategy with targeted ad buys in various publications, signage in dealerships, digital media, and I suspect some outdoor as well. The “Dear Subaru” imagery and messaging is all tailored to encourage conversation about the Subaru brand. People share their stories on the Web, but is so often the case conversations extend from online to offline as well as the reciprocal. It is a clever strategy, and I look forward to seeing how the campaign performs.
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If you see one of the ads featuring my photo and story please tear it out, take a photo, or forwarded it to me online. I would appreciate it!
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