According to MarketingExperiments.com – a leading source of data-driven internet marketing recommendations – testimonials are especially useful in a digital environment that’s often fraught with “over-marketing”:

“Today’s consumers are fed up with exaggerated and unsubstantiated claims. It’s far better to let someone else do your bragging — customers, partners, trade press, etc. Why? Because when the quality of information is debatable, today’s consumers will always resort to the quality of the source.”

But what do these testimonials look like in the real world?  And how can you capture the benefits of these user-generated content features on your own site?  Let’s take a closer look at the practice of using testimonials on your site…

For starters, the Insider Tactics marketing blog defines “testimonials” as:

“Statements made by other people and ideally by your customers that demonstrate satisfaction with your product. “

These statements can be integrated into your website in a number of different ways in order to offer your readers concrete proof that the claims you’re making about your products and services are valid.  Check out the following examples to see a few of the different ways that testimonials can be incorporated into your website:

• The Freshbooks accounting software website integrates client testimonials related to both the company’s products and support directly into its home page:

• The Market Samurai web marketing research program highlights testimonials at key places within its sales letter, making this valuable information standout with boxes and color attributes:

• The Clover website design company makes use of video testimonials to share its positive customer experiences – a technique that may be even more effective than text testimonials alone:

Although the structure of each of the different types of testimonials varies, the intent is the same amongst all of them – to convince readers that real people have purchased and benefited from the site’s products or services.

Now that you have a good idea of what testimonials are and how they can be used effectively on your website, let’s take a look at how you can go about adding these powerful features to your website…

As you might expect, the first step to using testimonials on your website is to collect them in the first place!  Although post-purchase customer follow-up should already be a part of your business model, collecting the information needed to craft good testimonials requires a slightly different process.

To capture the best testimonials, use the results of your post-purchase follow-up to determine which customers are most satisfied with your products or services.  Clearly, obtaining feedback from people who were disappointed with their purchases isn’t going to result in the most persuasive testimonials!

However, when contacting potential testimonial providers, be aware that the specific questions you ask your buyers plays a major role in the quality of the testimonials you’ll receive.  For example, consider the following two testimonial request messages:

“Hi Robert,

I’m so glad to hear that you’re satisfied with your purchase!  I’m always looking to feature feedback from happy customers on my website, so could you please send me a short paragraph describing what you like best about your purchase?

Sincerely,

Jessica the Store Owner”

Versus

“Hi Robert,

I’m so glad to hear that you’re satisfied with your [product name] purchase!  As a service to future buyers, I like to feature feedback from happy customers like you on my website.

If you’re willing to share your experiences, please send back your responses to the following questions (or feel free to write your own message), along with a picture of you and a link to your website (if applicable)?

1. What problem were you facing that (my product) solved?
2. How much has (my product) increased your profits or income?
3. How much time or money has (my product) saved you?
4. Has (my product) made your life easier? How?

Thanks in advance!

Jessica the Store Owner”

The second testimonial request letter benefits from the use of “leading questions” – that is, queries that ensure you receive a more interesting responses by prompting past buyers to share the type of information you’d like to receive.  Giving people a framework to go off of also increases the likelihood that past buyers will follow through on the testimonial process, as answering questions is perceived as less effort than writing a testimonial from scratch.

One final note on obtaining testimonial information…  There’s no arguing that the process of contacting customers, compiling feedback and uploading this information to your website can be time-consuming, even if you do stand to substantially improve your website results through this effort.

Unfortunately, many website owners use this as an excuse to make up testimonials or use “testimonial generator” programs to receive feedback from paid commenters.  However, I strongly encourage you to stay away from these unethical programs!  Not only do these false testimonials do your current customers a disservice, they can be illegal in light of new FTC guidelines that regulate how feedback can be used.

Finally, once you’ve obtained a few responses back to your requests for testimonials, it’s time to start adding these helpful snippets to your website.  There are a few things you’ll want to keep in mind as you do so:

• Include as much identifying information about the person providing the review as possible. Including your reviewer’s name and picture should be considered the “bare minimum” amount of information that constitutes an effective testimonial.  Testimonials that feature a video clip or the reviewer’s city, email address or URL are even better, although you may find that it’s more difficult to get reviewer’s to commit to sharing this personal information online.
• Share testimonials on multiple areas of your site.  Include a few on your home page to encourage new visitors to engage further with your content, but also consider incorporating them into your site’s sidebar, “About” page, “Testimonials” page or on any part of your site that sells your product or service.
• Split test the specific testimonials you use, as well as where you place them.  You’ll likely find that certain customer testimonials are more persuasive than others, and that using testimonials on specific areas of your site results in more sales or conversions.  However, you’ll only find this out for sure if you actively split test these variables to determine which reviews and placements are most effective.
• Solicit testimonials on an ongoing basis.  Testimonials get stale after a while, and any testimonials in place that refer to products or services you no longer offer will make your site appear out of date.  To benefit most from this strategy, make asking for testimonials a regular part of your customer follow-up process and swap out your older reviews as these new testimonials come in.

Are you using testimonials on your website?  If so, have you seen an increase in sales as a result?  Share your experiences in the comments below!

Image: kreg.steppe

A publishing calendar dictates what you’ll post and when, as well as how you’ll manage the other ongoing tasks associated with running a blog, such as promoting its content and engaging with followers.

An effective publishing calendar addresses the following issues:

• When posts on your blog will go live
• Who is responsible for each scheduled post
• How and when you will respond to comments on your blog
• How you will promote your blog posts

Let’s look at each of these tasks in more detail.

Step 1:  Schedule content ahead of time.

The first — and most important — task in creating a publishing calendar is to determine your desired content and schedule. Effective bloggers don’t just throw together a new article whenever the mood strikes. If you want to maintain a thriving, growing audience, you need to have a plan for what types of content and how often you’ll post.

In our previous post on business blogging, we talked about three major types of content to consider sharing:

• “Fresh” or newsworthy content (articles that offer a timely reaction to an industry news story or current event)
• Evergreen content (how-to and advice-filled articles that will be useful to readers no matter when they’re posted)
• Personal content (posts that reveal more about your personal life and opinions)

First, choose a rough ratio for your post types. Your ideal balance may vary depending on what industry you’re in, but a good place to start is 50 percent newsworthy content, 35 percent evergreen content, and 15 percent personal content. You don’t have to adhere to your target ratio religiously, but having a rough idea of how many articles you’ll need from each content category will help you to ensure that your posts are always valuable and interesting to your readers.

Next, determine how frequently you’ll post to your business blog. In order to build an audience, you’ll need to post regularly. If your last post is weeks out of date, readers will quickly grow bored and stop paying attention to your site — exactly the opposite effect of what you’re trying to achieve.

You don’t have to post daily in order to build an engaged audience, but you should aim to post new content at least once a week. If you can manage it, posting 2 to 3 times a week is even better in terms of creating the perception that your blog is active, interesting, and worthy of repeat visits. Posting daily enhances this effect even further, but be wary of investing too much time in your business blog at the expense of other aspects of your company.

Next, brainstorm at least 2 to 3 months’ worth of topics — and make a list. If you have the time, consider preparing some of these posts in advance, so you can easily launch them when you’re pressed for time. Even if you are unable to stockpile future articles, simply having a list of pre-approved topics will help get you motivated on days when you’d rather do anything but write for your blog.

Step 2: Manage authors and publishing rights.

When building your publishing calendar, consider is who will be responsible for launching each of the blog posts you scheduled in Step 1. Obviously, if you’re the only one writing, you can skip this section altogether, because you won’t need to worry about approving drafts or scheduling posts from multiple writers. However, if multiple employees share the responsibility of writing posts and publishing to your business blog, you’ll want to establish a procedure for managing multiple authors and publishing rights.

In general, if several people write for your blog, it’s easiest to have one person retain final authority for reviewing all article submissions and setting them up to go live. Depending on the blog platform you’re using, you should be able to give multiple authors the rights to load posts to the site, but not to publish them for public viewing.

Once the posts are loaded, the one person with editing rights can review and approve posts to publish to the site. By setting this approval system up in advance as part of your blog publishing calendar, you’ll minimize confusion and ensure that posts are published according to the schedule you established in Step 1.

Step 3: Review and respond to blog comments.

When you set up your business blog, you’ll need to decide whether or not to enable readers to leave comments on your posts. Although enabling comments ultimately creates a little more work, turning on this feature makes your blog seem more interactive and engaging to readers.

If you turn comments on, be sure to assign the following responsibilities as part of your publishing calendar:

• Manually approving comments
• Weeding out spam messages
• Replying to comments left by readers on your posts

Approving comments and deleting spam messages can be done quickly and shouldn’t require more than 10 to 15 minutes per day. Replying to comments left on your site, on the other hand, can take quite a bit of time. To minimize your total time investment, consider replying to only those comments that are left within a day or two of the post going live.

Step 4: Promote each new post.

The final element that your publishing calendar should cover is how and when you’ll promote each new post that goes live on your site. When you launch your blog, your initial readership may be quite small, making it vitally important that you get out there and spread the word.

New blog posts can be promoted in numerous places. Choose the ones that are right for your industry and schedule time to do them into your publishing calendar:

• Social media sites (including Facebook, Twitter, and Google+)
• Industry forums and message boards
• Social bookmarking sites (including Reddit, Digg, StumbleUpon, and others)
• Blog carousels
• Press release directories

By taking the time to assign each of these responsibilities and create a system for tracking task completion, you’ll ensure that your business blog becomes the thriving community portal it should be.

Image: Amanda Rudkin

In fact, this isn’t the case. And if you aren’t careful about the way you manage the rights of the images you use on your website, in your social-networking campaigns, and as a part of all your other marketing campaigns, you could find yourself liable for legal damages resulting from the misuse of copyrighted material.

How can you protect yourself and ensure that the images you’re using are legit? First, let’s look at some background information on how images and other creative works are protected, and then we’ll explore different options for appropriately sourcing graphics for your website and marketing materials.

Essentially, all creative content is presumed to be copyrighted upon creation, according to the Berne Convention for the Protection of Literary and Artistic Works and the U.S. Copyright Act. In other words, if you take a picture, write a blog post, or create any other type of content, it is automatically copyrighted and protected under these statutes. You don’t need to file a permit to claim copyright status, and you don’t need to explicitly state that you own the copyright license to your content. It is, simply, your protected content from the moment of creation.

The reason these statutes exist is to protect the financial interests of the people who have created the content in the first place. Although it may not seem like a big deal to swipe an image file from Google Images or any other website you come across, professional photographers often rely on the income generated through the sale of these images to pay their own bills. And, as you’re basically stealing their income, they have the right to go after you in the courts to seek financial damages.

For your sake, it’s important to understand the terminology surrounding stock imagery, and the particular legal rights each of these terms convey. Here are a few words you may hear surrounding the use of images online:

• Royalty-free — Although many people presume that this phrase implies that an image may be used free of charge, it actually means that the image may be used without paying a separate fee each time you use it (in accordance with the terms of its stated license). For example, if you purchase a royalty-free image through a stock image provider such as Getty Images or iStockphoto (see below), you may use the image as often as you like after paying the initial license fee.
• Rights-managed — If you’re simply looking for stock photography to fill out your website, you won’t likely need to worry about rights-managed images. But for awareness’ sake, know that rights-managed images specify the exact terms of use allowed at the time of purchase and can include restrictions on where the image may be used (both geographically and in specific types of media), how often it may be used, the length of time for which the license is valid, and so on.
• Creative Commons — The Creative Commons license is a relatively new creation that allows artists and photographers to specify the exact terms under which their content may be used. Images released under the Creative Commons license aren’t necessarily free, although some publishers specify that images may be used freely as long as proper attribution is given.

In all cases, the images you use from these sources are governed by “licenses” that specify the specific rights you have to each image and the ways in which you may use it. No matter what type of image you use, it is your responsibility to ensure that you’re using the image in accordance with the license type you’ve purchased — otherwise, you expose yourself to possible legal action.

When sourcing images, be sure to ask yourself the following questions to be sure you’re satisfying all necessary image licensing requirements:

• Am I using this image for personal or commercial use? Many images can be used freely for personal purposes (e.g., wedding announcements, holiday letters, etc.), but nearly all business-related activities online (including social-networking profiles, email newsletters, and so on) are classified as “commercial use.”
• Am I using this image in accordance with its stated license? Specific licenses may restrict when and where an image may be used, whether or not it may be modified, and how attribution must be given. If there are any elements of an image license you don’t understand, seek legal counsel to be sure you’re using the image appropriately.
• Have all necessary releases been granted for this image? If the image you’re using features a model or product that isn’t public domain, be sure all parties have involved have signed releases to transfer all rights to the original copyright holder. Even if you’ve purchased an image license from a legitimate source, you could still open yourself up to legal action if the models or product owners involved haven’t signed off.

If this all sounds intimidating, don’t worry. Although it’s important to understand image rights and the legal repercussions that may result from misusing graphics, sourcing images for your website is usually simple and straightforward. Here are a few websites you can use to find legitimately sourced images for your business pages:

iStockphoto – One of the most widely-used sources of royalty-free stock images, iStockphoto offers clearly defined standard and extended licenses for use in a wide variety of scenarios.  Most website design usages will fall under the terms of the standard license, which offers a guarantee that all images meet applicable copyright guidelines for a very modest fee.

Stock.Xchng — Owned by HAAP Media, a subsidiary of Getty Images, Stock.Xchng is “the leading free stock photo site” online today. Although all images found on the site may be used without paying a fee, the company still enforces some restrictions on how and where they may be used. Be careful to check the specific license terms before using images from this site, and be aware that the popularity of the site means that the image you’ve chosen has likely been used frequently on other websites already.

Creative Commons on Flickr — You’re probably already familiar with Flickr, as it’s one of the largest photo-sharing websites online. However, you may not be aware that many of the users that have uploaded photos to this site also make them available for commercial use under the terms of the Creative Commons license. Check out the Creative Commons directory on Flickr to learn more about the specific types of photo licenses offered and to find thousands of free images that can be used on your website (with proper attribution, of course).

Using resources like these to source images for your website can take much of the hassle out of navigating image license rights and attribution requirements. It also protects your business’s legal and financial interests, while ensuring that artists around the world are properly compensated for the work they produce.

Image: s_falkow

Today, we’ll look at how business blogs work in more depth, as well as cover the steps you need to take to add one to your own website.  Let’s get started!

The first step in launching a business blog is installing blog platform software on your website.  Although you could simply designate a static HTML page as your business blog and update it regularly with new content, this isn’t a recommended solution.  Blog platform software is uniquely coded to manage frequent updates and provides a number of search engine optimization benefits that occur apart from standard HTML pages.

But knowing to use blogging-specific software is only half the battle – the next step is to choose the one that’s right for your website.  By far, the most popular blogging platform is WordPress, which can be easily installed and customized to match the look and feel of your website.  As an added bonus, uploading content and managing posts through the WordPress dashboard is easy enough for even beginning webmasters to handle.

However, WordPress isn’t the only blogging software out there that can be used to create a business blog on your website.  Movable Type, Joomla, Drupal, Expression Engine and BlogEngine.net are all viable alternatives, so you’ll want to do some research into each of these platforms before deciding which blogging software is right for your business.

Once you have a blogging platform picked out, the next step is to install it on your website in order to start building your business blog.  Depending on the way your hosting is set up, this could be as simple as running a script and designating the specific directory on which you’d like your site to be built (for example, http://www.yoursite.com/blog/, with “blog” as your chosen directory).  If you aren’t technologically savvy – or if the process is more complicated based on the type of hosting your site runs on – you can always outsource this process to a qualified web developer.

Congratulations – at this point in the process, you should have your very own business blog up and running!  Now it’s time to design your blog and update it with fun and informative content…

After your blogging software is installed, you’ll want to customize the look and feel of your business blog.  If you’ve chosen to go with the WordPress platform, this is done through the use of “themes” – aka, template files that can be added to quickly and easily change the look of the default installation.  The WordPress directory offers tons of free themes to choose from, although you can also create your own custom theme using tools like Artisteer or hire a graphic designer to create a theme if you have something unique in mind.

As far as choosing a theme direction goes, most website strategy experts recommend coming up with a blogging design that mimics elements of your homepage, whether through the use of similar colors, fonts or graphics.  This will help to ensure a cohesive theme to your site and will eliminate the cognitive dissonance that can disrupt readers’ attention when they land on a blog that looks significantly different from its home page.

Keep in mind that one of the major advantages to installing a blogging platform on your site to run your business blog is that you can change its entire look and feel by simply uploading a new theme.  Don’t get too hung up on making sure that everything is perfect from the get go – remember that you can always make changes and improvements as you go along.

Now that you’ve chosen a design theme to move forward with, it’s time to start adding content.  There are a few different types of blog posts that you’ll want to consider adding to your publishing schedule:

Newsworthy Content – In late 2011, Google released a major “Freshness” update with the goal of providing up-to-date results for specific topics.  Basically, for certain search queries – like those related to conferences, major events or other time-sensitive occurrences – the search results follow a new algorithm which prioritizes timely content over articles that would otherwise rank well according to traditional SEO.

Because of this – and because of the potential for your business blog to brand you as an authority in your industry – it’s a good idea to feature many articles on your blog that are related to high priority industry news.  For example, if a new product or service is released in your niche, weighing in on it could help your site to get noticed in the Google SERPs faster than it would through traditional SEO.

Evergreen Content – “Evergreen” content is referred to this way because it contains information that will always be useful to your website visitors.  For example, if you run a website in the fashion industry, certain trends will come and go, but articles on topics like “dressing your figure” or “budget shopping techniques” will always appeal to your readers.

For best results, try to structure evergreen content around good long tail keywords in your niche – that is, keywords that have consistent search volume and a low number of competing pages.  As your evergreen articles get shared around the web, these back links will help your articles to maintain high positions in the search results pages, ensuring that even more traffic finds its way back to your site.

Personal Content – One of the other advantages of running a business blog is that it lets your readers see “the man (or woman) behind the mask.”  When you run an internet business, you aren’t able to connect with customers the way you can in a traditional offline store.  This often prevents the loyalty and associations that people have with their favorite offline retailers from developing with online merchants.

A business blog lets you remedy this situation by sharing elements of your personal life or personal opinions with your readers.  Obviously, your business blog isn’t the best place to post on the great meal you had for dinner, but by carefully referencing pieces of your family life or personal philosophy can help readers form a more personal connection with you and your business.

When it comes to balancing these types of blog posts, there’s no exact formula to follow to determine what percentage of different types of posts will be appropriate.  If you work in a fast-paced industry where things change quickly, you may want to dedicate more of your posts to newsworthy content.  On the other hand, if you work in personal development or personal finance, sharing more information about your life through personal content could be valuable.

To identify the ratio that’s right for you, track how visitors respond to specific posts on your site.  If you get more comments or social shares on one type of post over another, that could be an indication that your audience prefers this type of content.  By paying attention to the reaction each post gets, you’ll be able to better tailor the content on your business blog to meet the unique needs of your audience.

Image: mugfaker

Of course, there’s no reason to reinvent the wheel when it comes to writing these text blocks!  Plenty of experienced marketers have gone before you and done the heavy lifting of determining what works – and what doesn’t work – when it comes to writing headlines.  So if you’re struggling to keep people on your site long enough to get them invested in your brand, check out the following proven headline formulas that you can adapt to your site.

Formula #1 – Get [desired result] in [desirable time period]

This headline formula comes to us from the Daily Egg blog, where writer Russ Henneberry states that:

“This headline makes a promise, as all good headlines do. It promises that we will receive a benefit. And it promises that we will receive a desirable quantity of that benefit in a desirable time period.”

Basically, there are two schools of thought when it comes to motivating people – you can either help them get something they want or you can encourage them to avoid something painful.

This formula plays on the first suggestion by telling readers not just what they’ll receive for following through with your website, but also when they can accept to receive it.  This is especially powerful, as creating a definite time frame allows people to envision themselves actually acting on your advice – making them more likely to stick around on your site.

Examples of this headline formula in action:

• Get the Beach Body You’ve Always Wanted – Lose 28 Pounds in 3 Weeks!
• Eliminate Your Debt in 24 Hours with This Proven Solution!
• Earn Your Business Management Degree in Just a Few Hours a Week!

Formula #2 – [Avoid common problem] with [my solution]

Our first headline formula focused on helping people receive something they want, but there’s plenty of evidence that suggests the avoidance of pain is an even more powerful motivator.  For this reason, headlines that emphasize not just these pain points but also promise a solution can be incredibly effective.

Here’s how this formula can be used:

• Cut Your Tax Bill in Half by Using These Sneaky Loopholes
• End the Pain of Athlete’s Foot with These Proven Remedies
• Get Your Pants to Fit Again with This Celebrity-Endorsed Diet

Formula #3 – Are you [provocative question]?

It’s human nature to want to respond to questions we’re asked, which is what makes headlines that incorporate a provocative question so powerful.  Even if the stated situation doesn’t completely apply to us, the headline has still evoked a level of curiosity that must be sated by reading further.

Of course, this headline formula comes with a few caveats, as Dean Rieck explained on Copyblogger:

“However, your question cannot be random or clever. It must relate directly and clearly to the major benefit of the product. It must also prod the reader to answer “yes” or at least “I’m not sure, but I want to know more.””

The following are a few examples of this headline being used effectively:

• Are You Struggling to Pay Your Bills Each Month?
• Do You Make These Six Common Weight Loss Mistakes?
• Are You Stuck in a Dead-End Job That’s Going Nowhere Fast?

Formula #4 – Totally new [solution] finally solves [common problem]

Just as we humans are programmed to respond to the questions that are asked of us, we’re also universally intrigued by the “latest and greatest”.  For this reason, headlines that are structured to sound like newspaper announcements are great at capturing attention and motivating readers to investigate your content further.

Here’s how this principle looks in practice:

• At Last! Scientists Uncover the Secret to Preventing Ugly Wrinkles
• Finally Overcome Your Diet Struggles with the Latest Weight Loss Breakthrough
• Discover How Our New App Can Substantially Improve Your Personal Productivity!

Formula #5 – How to [solve common problem] using [new solution]

There’s something about a “how to” or DIY tutorial that appeals to our hunter gatherer instincts.  And this makes sense – in prehistoric times, it was the humans that learned to quickly adapt and adopt new skills that survived long enough to reproduce and pass on their genes.  With a carefully structured headline, you can take advantage of this “do it yourself” instinct in order to draw people in to your web content.

Check out the following examples that all make use of this “how to” structure:

• Discover How to Increase Your Email Subscription Rate by 200% Using This Proven System!
• How to Make Your Website Copy Irresistible to Readers in 3 Easy Steps!
• Find Out How to Maximize Your Garage Sell Profits in Just 10 Minutes!

Formula #6 – [x] reasons why [your option] is better than [industry standard]

Surprising headlines are great for attracting visitors, and comparing a new solution to an industry standard – as in the headline formula above – helps to make your content more engaging by providing readers with a frame of reference for what they’re about to read.

For maximum effect, consider the advice of Julie Eason, writing for Virtuosi Media:

“This headline works best if it’s surprising or goes against traditional thought. It creates a conflict in the brain because it’s just not right, and curiosity practically forces you to keep reading.”

Here’s how to do it:

• 3 Reasons Why Dark Chocolate is Healthier Than Milk Chocolate
• 5 Reasons to Avoid the Gym and Work Out at Home
• 7 Reasons to Choose Us Over Our Leading Competitor

Formula #7 – [x] myths about [common conceptions]

Let’s face it – no one wants to be that guy who’s misinformed or out-of-touch.  Even if they relate to a subject we have no personal interest in, there’s something compelling about uncovering myths or common misconceptions that appeals to our desire to be “in the know”.

Check out the following examples of this headline formula in action:

• 7 Myths About Weight Lifting That Could Be Killing Your Results
• Could These 5 Myths About Dieting Be Making You Fatter?
• Common Myths About Computer Viruses: How to Keep Your PC Safe

When choosing a headline formula for your website, keep in mind that the particular structure that’s most engaging to your readers could vary by industry.  For example, readers in the weight loss and fitness industries have clearly defined pain points, which makes headlines that appeal to these weaknesses more effective than those that promise a defined benefit.  On the other hand, electronics consumers may be more easily swayed by headlines that promote certain product features or benefits.

Because of this variability, it’s vital that you split-test your headlines in order to maximize your results.  Comparing one headline against another – rather than going on “gut feel” or instinct – is really the only way to ensure the headline you’ve chosen for your website is as effective as possible.

Image: NS Newsflash

First of all, a little background information…  Since its inception, Netflix has offered both its streaming service and its mailed DVD service under one package, with different pricing tiers based on usage.  For example, customers on the lowest priced plans could request a limited number of DVDs at any time, but still access Netflix’s entire streaming library.  As the tiers increased in price, additional DVDs were available for rent at any given time.

But on July 12, 2011, the company announced that it would be splitting these popular services into two separate companies and that customers who wished to retain both streaming service and DVD rentals would be required to pay two monthly subscription fees.  This move effectively increased the price of the lowest tier of service by 60%, rising from $9.99/month for the lowest priced unlimited-DVD plan at Netflix to $15.98/month to utilize both services.

As expected, the public reaction to the announcement – which occurred via email and letters mailed to subscribers’ homes – was anything but positive.  Customers turned to the web and promised to leave when the company implemented its new pricing policy in September 2011.  What was most surprising was that these customers actually followed through, leaving the company in droves.  According to an article on the Huffington Post:

“Netflix, in a note to investors, has said that they are set to lose about one million more subscribers than they thought they would following the big price change of July 2011.”

In addition, the company shared the following charts with its stakeholders in a letter dated September 15^th, 2011, outlining their initial subscriber expectations post-price increase, compared with their current projections:

As a result of these botched projections and what is widely seen as an ill-advised business move, Netflix stock prices are tanking, falling to a low price of $115/share, as illustrated in the following chart from the Wall Street Journal:

Now, how Netflix (and the newly-launched Quikster DVD rental service) will perform post-split is anyone’s guess.  There are certainly arguments both for the split as a necessary business move to avoid the eventual irrelevancy of the physical DVD market as well as against Netflix’s atrocious handling of its price increase from a PR standpoint.

Yes, the company is facing challenges.  Competitors like Redbox or Hulu’s paid streaming service – neither of which were major players when Netflix first launched – offer consumers additional choices for media consumption, expanding a field that Neflix once dominated.  Netflix is also facing pressure from both TV and movie studios, which could dramatically increase their licensing fees as soon as their current contracts expire.

Not that any of this will necessarily cause Neflix to collapse, as revenues will increase even if the company’s projected subscriber losses hold true, thanks to the dramatic change in minimum prices.  And it’s especially hard to say that a company with 24 million active subscribers is in danger of going out of business any time soon…

However, there’s no doubt that the company’s strategy of notifying customers about upcoming changes failed overall, and may have resulted in incalculable damage to the Netflix brand in a marketplace where it’s already meeting substantial challenges.

In the eyes of most consumers, Netflix’s biggest misstep was not justifying the increase in costs with a demonstrable improvement in its services.  Concerns about the quality of the Netflix streaming library have been growing increasingly louder over the past year or two, and the recent loss of Starz Network programming only amplifies this sentiment.

From a business standpoint, there’s nothing wrong with increasing prices – in fact, this is frequently a necessity in order to survive in changing markets.  However, as an online business owner, it’s important to follow a few basic guidelines when upping prices:

• Clearly state the rationale for a price increase. Most consumers understand that there are factors outside of a business’s control that can lead to higher prices.  If Netflix had said something as simple as, “We are increasing this fee in order to bring you a better selection of higher-quality programs” (and then followed through on that, of course), there’s a good chance that much of this mess could have been avoided.
• Ensure the implications of a price increase are understood. After the fallout from its price increase, Netflix customers were hit with another whammy – post-split, the company’s streaming service and DVD rental option would be completely separated, requiring updates to billing information, queues or user reviews to be posted to both sites.  And while separating the companies now may make sense if Netflix eventually plans to drop its DVD service, the reasons behind this move were never fully explained to consumers, resulting in frustration.
• Offer empathy. Netflix CEO Reed Hastings royally screwed up with not just one, but two separate messages to customers with a decidedly, “take it or leave it” tone.  I’ll keep this lesson simple.  If you want customers to understand and go along with your price increases, do your absolute best to acknowledge that paying higher prices will require a sacrifice for some people.  If you want them to leave your service as quickly as possible, offer no explanation for your changes and then follow up months later with a rebranding announcement disguised as an apology.

While it’s still too soon to say if Netflix’s handling of its price increases will result in enough lost subscribers to do significant harm to the company, it’s unlikely that the majority of Netflix customers will jump ship right away, as there’s no true alternative to the size and scope of Neflix’s service.   As Forbes points out:

“It is true that many subscribers are unhappy with recent service restructuring and pricing changes, but where are they going to go? The other competitors are there but haven’t gained scale yet.”

If you’re a small business owner studying the lessons of the Netflix price increase in order to determine how to raise your own rates, you likely don’t have this advantage.  Even if your business is unique enough not to face significant competition, it’s hard to imagine that most of you are in the position to lose over a million customers overnight without seeing a negative impact.

So instead of following Netflix’s bull-headed approach to forcing through major structural changes and price increases, take the time to think about how your customers will react to higher rates and prepare to meet their objections ahead of time.  Be truthful, be honest and be upfront about the changes that you’re making, and you’ll be rewarded with both customer loyalty and increased revenue.

Image: alforque

The most comprehensive free analytics package is Google Analytics, and it’s easy to set up, too! Follow along to set up analytics on your site and start learning more about your visitors.

Create a Google Account

Contrary to popular belief, you do not need a gmail address to create a Google Account. Just click Create a Google Account and you can use your existing email address along with a password. Of course, if you have an existing Google Account (including with a gmail address), just sign in with that account.

You will also need to add your country, time zone, and phone number during the process – just keep following the prompts.

Add Site Information

You also need to add information about the first website you would like to track analytics for. When your account is set up, you can add more sites. You don’t need to add much more information than just the URL, but make sure it’s a URL that you own: in later steps, you will need to add a piece of code to your site for Google to track.

Accept Terms

Read and accept Google’s terms and conditions, and consider sharing your data. Data sharing is not required, but all the shared data goes to make Google’s new benchmarking service better. You can change whether your data is shared or not through your account settings.

Add the Tracking Code

After you have agreed to terms and conditions and finished creating your account, you are given a block of JavaScript code to copy and paste into your website. Use the “New Tracking Code (ga.js)” – the legacy code is created for users of an older version of Google Analytics. Copy the entire block of code.

If you do not have access to your website’s files, email the code and instructions to your webmaster and ignore the next paragraph.

If you do have access to your files, you need to make sure the code is pasted in the source code near the end of each page, just before the </body> tag. This tag should not appear as text to anyone who is visiting your site. The best way to do this, especially if you use WordPress or another CMS, is to add the code to the footer file (usually named footer.php or something similar). Make sure your file is saved and uploaded successfully to the server.

Make sure it’s working

Once your file is live on the server, it’s only a matter of time before your Google Analytics homepage detects the files. When it does, the website status in the Status column will change from “Tracking Unknown” to “Waiting for Data” or “Receiving Data.”

If you want to make sure all of your pages have the Google Analytics code installed correctly, you can use the third-party service created by EpikOne at http://www.SiteScanGA.com. After signing up with your email address, you will receive a report showing how many pages your site has and how many of them have the correct Google Analytics code.

Wait for Results

After you have installed Google Analytics, it might take a little while for your first data points to appear. It will probably take a week or a month before you start seeing data trends. It is easier to do in-depth analysis after you have already established a baseline behavior of your users, so don’t change too much right after you install analytics. It is important to check on your analytics periodically, and more often if you are actively trying to change your site’s search engine ranking, starting a new advertising campaign, or otherwise trying to solicit more traffic. As you make changes, seasons change, and other outside influences vary, you can watch how each change impacts your traffic and change your website accordingly.

Though this only scratches the surface of what you can do with analytics, now that you have them set up, you can experiment for yourself!

Create a Fan Page

First things first, create a page for your business. Make sure you have a few photos and a logo on hand, and choose the appropriate categories related to your business. When creating the page, try to fill out all the information right off the bat, so you don’t have to come back to it later. Some things, like a vanity URL, can only be created when you have enough fans, but start with what you know.

Make the Page Engaging

Once the basic information about your page is filled out, try experimenting with adding apps, creating a landing page, or having fun with your images. Try looking up “great Facebook business pages” for inspiration, because a number of blogs have done different roundups pointing out a number of unique features. Remember, make your business unique instead of feeling like you need to have the exact same features that other company pages do. You can always change it later!

Advertise the Page to Your Fans

Once you’ve created the page, it’s time to start getting some Likes. Ask your coworkers, family, friends, or loyal customers for the first likes directly, so that you at least have a few. If you have a newsletter, make an announcement about the new Facebook page and solicit Likes and design suggestions.

Once you have established a small fanbase, add a Facebook widget to your website. This can give social proof to new visitors while enabling anyone to Like your page without even leaving your website.

Start Conversations

As people join your fanbase, it’s time to let them know that you’re listening. In your account settings, you can switch to using Facebook as your page, which means that your comments will display the company name and profile picture instead of your personal picture.

Once people have become a fan, they rarely return to your company’s fan page. Instead, you need to depend on getting stories in their News Feed to help them make more of a connection with your company. Facebook’s algorithm determining what appears in a particular user’s News Feed incorporates how popular a post itself is (likes and comments), as well as how often that user interacts with a particular organization’s posts and page. So the more interaction you can encourage, the better!

Try posting surveys, questions, links, or announcements. Request likes and comments directly by saying something like “I can’t wait for summer. Like this if you agree!” or asking a question like “I can’t wait to jump in the pool. What is your favorite summer activity?” Post links to your blog or other relevant information – and if you post a link and ask a question at the same time, you can get even more exposure.

Remember, most companies on Facebook display a more casual, fun-loving side. Though you don’t want to alienate your fans if they expect more of a corporate persona, consider relaxing your communication style while still being respectful.

Talk Back

Facebook has become a powerful tool for customer service, which requires two-way conversation. Make sure that you are monitoring the activity on your Facebook page, and ready to answer questions, compliments, or complaints. Saying a simple “Thank You” is a nice touch if someone is just dropping by to say they like your products or services.

Complaints are more tricky to address, but try to make it clear that you respect your customer’s experiences and that you are willing to fix it or change something in the future. Stay personal, professional and sincere – sarcasm or jokes are bad ways to respond to problems anyway, and especially online where no one can hear how you are saying something.

Also, if you don’t know how to answer a question or complaint, leave a comment anyway letting someone know that you are following up and finding out an answer. Otherwise, even if you are working on it, your customers might feel like they are being left waiting.

Just Try It

You don’t have to use Facebook perfectly to start using it for your business. You will inevitably learn more as you continue to use it, but for now you should just give it a shot!

The Hello Bar is being used by a number of well-known bloggers and internet marketers, and they are seeing significant results. DIYThemes reported getting 1,180 additional newsletter subscribers in just one month, and others have used it to advertise books, products, and new blog posts.

How does it work? It gets noticed.

Short and Sweet

The Hello Bar can only hold about a Tweet’s worth of text, which only wraps on the smallest window size. A single line of text is generally unthreatening, and can be read in a few seconds without the friction that larger blocks of text have. Inevitably, some people will still ignore the Hello Bar, but they are becoming common on more and more websites.

A Little Nudge

The Hello Bar can also be gently disruptive. Website owners can select whether the Hello Bar appears instantaneously, or if it should appear after a few seconds, wiggling the page just enough to get noticed. Though this can be surprising to users, it is also very effective for attracting attention and doesn’t impede reading or interacting with the rest of the page.

Call-to-action

An immediate call-to-action gives users a very simple choice: either they can visit the link or they can continue reading the current page with minimal disruption. Though the bar can be hidden with a click, most users will simply ignore the minor intrusion and continue interacting with the page as they would have before.

Maximizing return

When using the Hello Bar, some calls-to-action are still better than others – just because you are using a new service doesn’t mean you can skimp on your copywriting! Pro accounts can do A/B testing with their Hello Bar headlines, but you can do your own headline testing with free accounts by changing the content every few weeks.

One recommendation is to offer something tangible in the Hello Bar, like a whitepaper or an ebook, instead of just telling your readers how to get free updates. Offering an email course or ebook is a great way to interest people in your newsletter even without the Hello Bar!

Landing pages

You also need to be careful where your link is sending your readers. If they aren’t greeted with something resembling what they were promised, chances are they will simply turn tails and leave. Instead, you need to have a tested, ready-to-work landing page to receive your readers. This is another chance for A/B testing to be sure that you are maximizing your conversion rate.

The Cost

Another great part about the Hello Bar: its price. The free Hello Bar can be customized with text, colors and fonts, and a free account can actually create 3 unique Hello Bars for different pages or sites and update them using Twitter.

For only $25 each month, the Hello Bar can be personalized even more, removing the Hello Bar branding and allowing for A/B split testing and advanced statistics. The Hello Bar can even receive updates via either Twitter or RSS.

Thankfully, we’ve distilled a number of subjects down to just 25 books that every blogger should read, in alphabetical order. Check out the comments to see which ones we’ve missed, or add your favorite!

Blogging for Business: Everything You Need to Know and Why You Should Care by Shel Holtz and Ted Demopoulos

A lighthearted look at business blogs, both internal and external, with plenty of advice for the technologically-challenged.

Breakthrough Advertising by Eugene M. Schwartz

Advertising strategies to set you apart from the pack and master successful copywriting and marketing.

Content Rules: How to Create Killer Blogs, Podcasts, Videos, Ebooks, and Webinars (and more) that Engage Customers and Ignite your Business by Ann Handley & C.C. Chapman

Most of these books are for more than just blogs, but this one in particular: if you’re creating any kind of online content, you need to make it right.

The Corporate Blogging Book: Absolutely Everything You Need to Know to Get It Right by Debbie Weil

If your company is ready to start a corporate blog, try out this book as a first primer to truly connect with customers.

Crush It! by Gary Vaynerchuk

Take charge of your passion, turn it into a business, and grow it with social media.

Don’t Make Me Think: A Common Sense Approach to Web Usability by Steve Krug

Start thinking about your website the way that your users think about your website.

The Economics of Attention: Style and Substance in the Age of Information by Richard A. Lanham

What do people pay attention to? How can you get more attention from people by making your work easier to consume and understand?

The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It by Michael E. Gerber

If you are striking out on your own as a business owner, figure out how to solve the problems outlined in this book before you run into them yourself.

Getting Things Done: The Art of Stress-Free Productivity by David Allen

Seldom has one simple, practical book met such acclaim, but millions now swear by the productivity practices in Getting Things Done.

Hot Text: Web Writing That Works! by Jonathan and Lisa Price

If you just want to get down to writing without worrying how it will turn out, learn how to write for the web.

Influence: The Psychology of Persuasion by Robert B. Cialdini

You need to understand how people think before trying to communicate with them or sell them anything.

Method Marketing: How to make a fortune by getting inside the heads of your customers by Dension Hatch

A great lesson in direct marketing, with a number of examples of things that worked and things that didn’t.

Naked Conversations: How Blogs are Changing the Way Businesses Talk with Customers by Robert Scoble and Shel Israel

Blogs connect with customers directly and constantly – take advantage of that and leverage it for your own blog and business.

Never Eat Alone: And Other Secrets to Success, One Relationship at a Time by Keith Ferrazzi and Tahl Raz

Your blog, your business, and your success is built on relationships, so keep getting to know people and leveraging the power of networking.

Ogilvy on Advertising by David Ogilvy

The basics of advertising from the best in the business. Old, but still valuable.

On Writing Well: The Classic Guide to Writing Nonfiction by William Zinsser

This basic book on writing is a classic that has stood the test of time.

Publish and Prosper: Blogging for Your Business by DL Byron and Steve Broback

A practical book to prepare you for your first business blog, complete with case studies.

Purple Cow: Transform Your Business by Being Remarkable by Seth Godin

Get ready to stand out and be noticed.

ProBlogger: Secrets for Blogging Your Way to a Six-Figure Income by Darren Rowse and Chris Garrett

This book isn’t just about creating a blog or monetizing it – it walks you all the way through the process.

Raving Fans: A Revolutionary Approach To Customer Service by Ken Blanchard, Sheldon Bowles and Harvey Mackay

Common sense customer service presented in a parable of a company that isn’t satisfied by just having satisfied customers.

The Rise of the Creative Class: And How It’s Transforming Work, Leisure, Community, and Everyday Life by Richard Florida

Bloggers are changing the world – and so are people in a wide range of creative endeavors.

Serious Creativity: Using the Power of Lateral Thinking to Create New Ideas by Edward De Bono

Brainstorm your best ideas yet by learning the best way to think creatively.

A Technique for Producing Ideas by James Young

Another book on creativity and idea generation for copywriters and marketers.

Twitter Power 2.0: How to Dominate Your Market One Tweet at a Time by Joel Comm and Anthony Robbins

Using Twitter to build relationships, have conversations, and grow your business.

Write It Right: The Ground Rules for Self-Editing Like the Pros by Dawn Josephson and Lauren Hidden

Often, one of the hardest things about blogging is being the only person responsible for your content. This includes writing well as well as touching up grammatical mistakes.

Think of any more book suggestions? Add them in the comments: