Have we forgotten about Lock-in and Positive Feedback principles?

Everyone is looking for the WOW factor or that next, new Web 2.0 feature to build into their sites. (What’s Web 2.0? check out this post on creating passionate users)

A lot of times Web 2.0 for retailers turns into a simple blog (see Neiman Marcus’s attempt for their new CUSP stores or in Nordstrom’s case a silly flash page. Flash is a favorite (especially to high/luxury focused retailers due to branding concerns that “look” the part). Obviously, this far misses the point.

Yet, even the social/community builders are missing the point…when it comes to incorporating value laden user tools or functions….think lock-in and easy to use tools that build of positive feedback/critical mass domain acceptance. How are these 2.0 mongers and retailers missing the mark????….when it comes to developing throw the WOW or Web 2.0 factor out the window and start with functions that build incremental value.

Think: LOCK-IN

1) How will our each of our services functions “lock-in” users. Lock in is the simple principle of slowly laddering users to use/learn more of your services and in return incrementally sharing more information about yourself. Then, when it comes to possibly switching to a competitor’s service, make the cost of switching (and learning a new system) prohibitive.

Examples:
A) If you have already created an account for Yahoo email…..you are likely to use their IM…..if you use their IM you are likely to use their RSS services….if you use their RSS, you are more likely to use their 360 blog publisher and use their Yahoo forums…yahoo toolbar…..etc. Then when Goggle comes out with a new RSS reader…why would a Yahoo user choose to switch to use this, instead of the Yahoo RSS reader?

B) A user shops at Amazon and creates an account. They then sign up for a free credit card. They input all their shipping information/locations. They then sign up for Free Shipping for $79.00 a year. They then share reviews and create a wish list and registries. Then why would they switch to buying online at Wal-Mart or Toys R Us when the product in question is offered at both?

The question here is how do all of your services tie into each other and compliment the laddering approach.

Think: Positive feedback/Critical Domain Mass

2) Does each time a user uses a particular feature or service….does it become more valuable to him/her and if so, is it even further compliment by other users.

Examples:

A) Positive feedback….Think wish lists. Can a user email their wish list to others…..can they prioritize items in their wish lists? Does it have alerts? Does it auto stamp dates items are added. Critical Mass…..think online reviews…..do you have enough reviews collected to provide a new user with ample review information….are they segmented by expertise, rating, submitted date..etc?

Ho Ho Ho....go online and skip the lines

Holiday shoppers are expected to spend $32 billion online this season, with purchases happening well past ground shipping cutoff dates....(what does this say about all those free shipping offers that online retailers are pimpin'?). This is suppose to represent 18 percent increase over last year....

Black Friday!

Ok, so tomorrow is the super huge shopping day. But what about "Cyber Monday"? Both of these are just great examples of marketers making up "events" by talking about themselves.

The other intersting point about tomorrow is how many online retailers are just SPAMMING everyday this week their email lists with promises of discounts or free shipping.....or BOTH! Another example of "empty" offers. Do these emails say anything positive about these companies or their services? Do customers really need a discount if you offer a compling, valuable product/service? Neiman Marcus, Bluefly, Spiegel, Guess...just to name a few have emailed me everyday this week......nothing but noise! And what about FREE Shipping offers? I know first hand that many Online Departments offer FREE Shipping (and I've even seen them offer free EXPRESS shipping) because of a little hidden, secret:

SHIPPING COSTs in many organizations are not tracked on the E-Commerce departments P&L. They are usually absorbed as part of the distribution centers cost. Sales driven markets...trying to show "growth" over the holidays and hitting even higher marks look at Free Shipping as a quick way to say they are offering a compiling customer promotion....when in reality it is just a "cheap" way of them not really coming up with a good reason to "Buy" or "market" what their business really does.