My Points: The Concept for the Website

For years I have been a big online shopper and would probably consider myself an earlier adopter.  I always have taken pride in finding name brand name merchanise for prices that most would think isn't possible.   

Because of this online shopping obsession I got some 'spam' mail for a online shopping website called MyPoints.com probably five years ago now.   For whatever reason the email got my attention and I looked into what it was all about.  At first glance, it seemed to simple and to easy to earn the reward points they were touting.  The thought of saving additional money though, the professional looking website and the fact that I did not have to provide credit card information led me to sign up.

The premise is simple: 

Five years later I still use MyPoints.com and I have received about $300-$400 in various gift cards with the points I have earned!  What a concept!   

What's in it for MyPoints.com and the various retailers that they work with?  In my opinion, it's pretty simple from the retailer standpoint.  By having the incentive for the MyPoints.com members to earn more points they will go through their website to reach the retailer they want to buy from.  With the same products being offered for the same price on so many websites the online retailers need that one extra catalyst that steers the customer to pick their website over another retailer's.   

Before I buy anything now online I will check MyPoints.com to see if they are partnered up with the retailer.  If they are not, I will actually spend the time to look for a retailer who carries the product at the same price or better and is paired up with MyPoints.com.   

This website and business model is not unique.  I have found other websites over the year offering similar services but my loyalities have been cemented.   It's just another great example of the creativity companies are coming up with to grow revenues and their brand awareness.   

Google Paid Search: what do they do with all that money?

This week I have spent some time researching Google Adwords and getting myself familiar with the concept of paid search.   I knew Google made a lot of money off of advertising but I had no idea it represented 97% of their total revenue.  I also find it interesting is the words that are the most expensive.  Insurance ... really?  I would have never guessed that if someone were to give me 3 guesses.  I wish I could find where Google discloses how much money they make annually on some of these Adwords.  A simple word can generate billions of dollars a year for Google ... what a concept.

One of the main takeaways I got from doing this research is that it made me realize the things that Google does that are not deemed 'sexy' (Paid Search) is what is funding all of their 'sexy' ideas that get all the media attention.   

The first couple things that come to mind are of course Google Glass and then the drone project and Project Tango to name a few.   More information can be found here in this article. To me this is brilliant by Google.  On CNBC I've heard some critics question Google on why they are wasting money on all this frivolous pie-in-the-sky ideas.  I take what they say with a grain of salt though because these are investors looking at Google's quarterly profits and trying to maximize the profits in the near-term. 

In my eyes, Google has this beautiful cash cow in paid search and they are trying to hit the lottery with another revolutionary idea.   To not rest on what made you successful in the first place is easier said than done for many companies.  I applaud Google for constantly trying to attack the market with new ideas and to step out of their comfort zone and to find the next big thing. 

Pinterest: An Online Shoppers Dream

The stigma of Pinterest when the site first gained popularity was that is was only for females.  I followed the crowd for a while on that theory before I finally when to check it out for myself.  What I found out is that, in my opinion, it is an online shoppers dream come true.   

The real beauty of Pinterest is not the obvious aspect where you store a beavy of ideas you come across while searching the web. The real beauty lies in the ability for your pins that are linked to an online store to become real-time coupons.  For example, I have a pair of shorts from Macy's pinned and when the item when on sale Pinterest notified me with this email: 

From an e-commerce perspective Pinterest is brilliant.  I can't remember how many times I have either completely forgotten where I found an item online I liked or did not want to buy the item at the current price.   It's clear that the savvy online stores understand this as they make pinning an item/image from their page very user friendly.   An example of this can be tied to my blog post from last week about Bonobos.  On there website you can simply click the Pinterest logo and move it onto one of your boards.

Bonobos: A Strong E-Commerce Company

As a person who lives in Germany the first thing that strikes me is how advanced the U.S. is internet marketing and e-commerce compared to the European countries.

The weaknesses here are glaring:  very little creativity in web design, minimal promotions and in general the shipping conditions leave you deciding that it's not worth it to purchase the product online.  

Bonobos, one of my favorite U.S. clothing companies, on the other hand, has a fantastic business model that is almost based entirely off e-commerce.   How can a clothing company selling HPP products exclusively through the internet thrive?  The answer is simple.  Their website and information they provide on it is excellent.   The website is designed in a way that makes you feel confident that what you are buying is exactly what you want even though you likely have never seen it in person.  

This combined with free shipping both ways, personal customer service reps "ninjas" that can be contacted through instant messaging and specific sizing dimensions make for a pleasant user experience. 

If you still have doubts about your purchase and live in the NYC area, Bonobos has you covered with their Bonobos Guideshop (http://bonobos.com/guideshop) where you can get personally fitted by your own personal stylish.   All of which is offered free of charge.