Research!

I’m a huge fan of research. Why? Because it’s a good way to gauge whether or not an idea I have is completely inauspicious before I waste any time or energy developing it. Research is the best! For example, you wouldn’t walk into a clothing store with a blindfold on and just pick clothes at random without checking the price, quality, etc., right? Of course not. If you’re a smart shopper you will probably go into several stores and get a feeling for the selection, quality, level of customer service, etc. before you make a purchase. If you’re an online merchant you should be anticipating this level of consumer involvement in the purchasing process when developing your product mix. Consumers have the same general expectations when shopping online as they do in brick and mortar stores. Lots of variables factor into a purchase decisions including variety, pricing, shipping cost and even the general look and feel of the store. So, how do you know if you stack up against the competition? Yes, it’s RESEARCH!

Here is a simple three step process I use:

Step#1: Google Keyword Tool

If one of my clients is selling Repettos (French ballet flats), I’ll enter a couple of versions of Repetto into the keyword tool like ‘Repettos’, ‘Repetto shoes’ and ‘Repetto slippers’. The search volume for the word ‘Repetto’ was approximately 22,000 last month and advertiser competition is pretty high. But the search volume for ‘Repetto shoes” last month was approximately 5,000 and competition on that keyword is much less intense. So, from using the keyword tool I have a a pretty good felling about the kind of keyword list I can build and what my daily budget will look like. But before making any final decisions, I’ll use another tool.

Step #2: Comparison Shopping Engines

Go to Shopzilla.com or some other CSE and search for “Repettos.” If you sort by price, you’ll get a pretty good idea about what your competitors are charging for the same or similar products. This is where your profit margins come into play. Can you afford to sell the same product at a price similar to your competitors? If not, you need to have something powerful and compelling distinguishing you from the competition. In order to compete at a higher price point you should be able to offer something like free shipping on all orders, satisfaction guaranteed, complimentary shoe polish with every purchase, etc. Otherwise, you’re giving shoppers no reason to choose you over the competitions. So, if you’ve completed step two and believe that you are able to sell Repettos at a competitive price or with a superior value incentive, move along to step three.

Step #3: AdWords Preview Tool

The AdWords preview tool is a great resource for scoping out your competition. Performing a query on “Repettos” will show you the ads you will be showing alongside your ads should you decide to sell Repettos. Make a list of the competitors that show up on the first page and visit their stores. Can you offer a superior selection, price, aesthetic etc. than your potential competitors?

If all of the research you’ve performed leads you to believe that you might be successful in adding Repettos to your product mix, chances are you should develop a Campaign and give it a test run. Success doesn’t happen overnight. But you’ll get much better sleep knowing that your logic was guided by research that yielded positive results.