December 11th, 2007

Long Tail, Short Head: unprecedented cross-selling

By Annie Turner - BKI Media

Everyone talks about The Long Tail, but what is it, where did it come from and how does it apply to digital marketing? The phrase was coined by Chris Anderson, editor-in-chief of Wired in an article published in that magazine in October 2004. It made a huge impression immediately and Mr Anderson subsequently expanded his theory into a book, The Long Tail: Why the Future of Business is Selling Less of More.

The theory refutes the long-held wisdom of the 80/20 rule whose premise is that 80% of sales would be made on the 20% of the inventory. The arrival of the Internet as a mass medium has proven this wrong. Amazon says 50% of its total sales come from a wide range of items that only sell once a month, while eBay’s staggering success came from auctioning obscure items.

| Leave a Comment

December 3rd, 2007

The Secret To Selecting Products For Promotions

By Dr. Shuki Idan

There are so many considerations to take into account when selecting products for promotions. If you leave out external factors such as special events, business goals, wallet share or customer propensity to buy, selecting the right product may be driven by many product related considerations. What we want to share with you in this post are the more important aspects that need to be taken into consideration when planning promotions, and then we will provide an actual method for pulling this off. Here’s what you need to think about before you get started:

Revenue / revenue share / margin – the associated product sales revenue that is kept by the service provider. A private case of revenue share is when the product is fully owned by the service provider and all promotion ideas are subjected solely to its consideration.

Margin or profitability – the amount of revenue that is left after the direct operational expenses related to the product.

| Leave a Comment