NOW Are You Going to Concentrate on Retention?
- Kath Blackwell
On July 1st, 2003 Visa made yet another new regulation announcement that caused some in the adult Internet industry to panic. Well, D-Day is nearly here - as of October 1st, 2003, acceptable charge-back levels for Sponsored Merchants will drop from 2.5% to 1% for domestic transactions, and from 2.5% to 2.0% for foreign transactions. If that isn't enough to bring the "Chicken Littles" of the industry out in droves, screaming that the "sky is falling" - what is?
Instead of responding with mass hysteria or panic, the adult industry behaved rather - well, adult - for a change. Billing companies sent out professional press releases, some resources wrote articles about changes needed within the industry, still others in the biz offered suggestions on ways that Sponsor Merchants - and their webmasters - could cut back on charge backs, lowering their acceptable percentages and increasing their retention. Retention - wow, what a concept!
In a recent issue of Klixxx Magazine - and in many other issues over the years - we focused on the importance of retention. It seems now that webmasters have no choice - their hand has been forced - it's time to start treating the customer like a customer and our businesses like businesses.
Cynthia "Cyndalie" Ashlock of PSW Billing (www.pswbilling.com) posted an article this week addressing the new regulations titled, "The 1% Difference." In her article she very visually illustrates the situation at hand and puts things into perspective. "It's easy to feel relaxed knowing 99% of your customers are happy," she says. "You win some you lose some, right? So 1 out of 100 customers have a complaint or can't remember what he did yesterday, and charges back the transaction. That's ok, right? Not anymore." The article gives some very sound advice, specifying the ways that webmasters can reduce their current ratio in preparation for the impending changes - and how webmasters who are already within the acceptable percentage rate can make sure that they stay in the 1% or under category. Many of these solutions boil down to a simple balance of good business and strong customer relations.
THE CUSTOMER IS BOSS
This is true more than ever before - and webmasters that represent affiliate programs need to know this and live this just as much as the affiliate program owners themselves. Affiliate program owners need to put forth more effort to make sure that their webmaster partners are properly promoting their programs, using approved banners and advertisements - even going so far as to make sure all text and descriptions are approved, as well.
Affiliate Owners - before you can truly clean things up - you need to make sure you take care of your own house first. Take a peek at the banners and tools that you offer to your webmasters and make sure that everything is up to date and current. Make sure you give them lists of "approved text" to use to go with those banners so that they are properly selling your memberships, and are not deceiving the potential customers in any way.
Webmasters - make sure you carefully review the affiliate program carefully, before joining or promoting. Read the Terms of Service carefully, taking notes if necessary, to use in your site building. Make sure that the content you use to promote these sites is 2257 compliant - and that you are compliant in everything that you post on your sites. Check the banners that are offered before using them, making sure that the membership rates posted are accurate and any trial periods listed are accurately quoted as well. If you are selling sponsors that offer a specific niche - make sure that your surfers know what they will be getting even before they get to the tour. Sure, the tour will tell them - but beginning the customer relationship on an honest note right from the very beginning will ultimately help you in terms of conversions and recurring memberships.
Honesty is the sure way to go - the days of just getting surfers to sign up and not worrying about what happens afterwards are OVER. It's time to treat that customer with respect, give them what they think they are getting when they sign up, and keep them happy and hopefully recurring.
Cyndalie's article also suggests to site owners that communication is one of the key elements that they can use to keep those customers happy and coming back for more. "Let [the customer] know exactly when the next update will be, how many pictures will be added, and 'here's a sneak peek' in your tour or members area - you can keep them happy for months on end. Learn from your mistakes, ask for customer feedback and read through past support e-mails to plug any holes where people have had problems. Did someone have a hard time finding that cancel button? Make sure that both support and e-mail links are found from your main page to your members' area. TELL YOUR CUSTOMERS exactly what they will receive for their money, and make sure to back it up in your members' area. Be specific; don't try to sell 'tons of blond pictures'- try '5,000 pics of only blondes,' for exactly how much and under what terms."
PART TWO: The Winds of Change
|
Printer
Friendly Version