 | Exclusive eTail Interview with Jana Eggers, CEO, Spreadshirt |
1. I know you’re an avid tweeter and your company has embraced social media as a successful brand loyalty tool. That’s why I have asked you to join the social media panel at eTail 2010. Can you lift a tip of the curtain and share a related anecdote with us typical of your ‘conversational marketing’ approach?
JE: My favorite Twitter responses are those when I have responded to a complaint by a customer, and they say, “Oh, I didn’t know you were listening.” Tweeps are still surprised when a brand responds and tries to take action, which tells us how little brands are responding still. I regularly complain and praise brands, and see which ones respond. And for us, it is about the conversation. I have learned some remarkable things from our customers and shop partners via these 140-character exchanges. I’ll be sharing some of those during the event, but also how to manage it, because it is a deluge of information.
2. As the Global CEO of Spreadshirt – operating across Europe and the USA – you know ‘one or two things’ about the challenges of international retail expansion. What advice can you give to fellow retailers who are considering cross-border expansion?
- JE: First is don’t do it until you (1) have made the most of your current market and (2) are ready to change what you do and how you do it. We have three businesses and have 8 primary markets. It is like running 24 different businesses. And time you spend on one often does not translate into time spend on the others. There are so many less synergies when you do this (because of cultural and purchasing differences) than you would think, and then you do have different economies at play. So, if you are ready for that, then I recommend that you hire as many native people as you can, even if you are serving the market centrally. If the UK is being directed from the US, that’s fine, but have a Brit there with you. Just because we speak the same language does not mean that you know this market.
3. I have heard a very specific complaint from EU retailers entering the US market surrounding sales tax. Would you mind clarifying how US sales taxes work for online retailers?
- JE: Online is different from offline, but offline has an impact. In addition to this, the laws are changing and there are local, state and federal pieces to consider. There is a reason why people are confused. I can’t give advice because you need a specialist for your particular situation. However, this is surmountable, and actually an easy one to solve with the right person. Your accountant can refer you to someone with in depth experience and take care of the issue quickly. With the overlaps with VAT, your systems should only need a bit of adjustment, mostly at the customer side.
4. All retailers continue to look at ways to optimise conversions. What is your company focusing on in that respect?
- JE: Trust has taken another step forward. In the past, trust was more basic: do they have a trust seal of some sort, do they take credit cards, is there a number I can call, etc. Now, those are expected, but don’t build trust. What builds trust (and drives conversion) is how the product is presented – even if your product is a service. How do you tell people what you are providing, and how they will receive it? This is one area of focus for us that has changed over the years regarding conversion.
5. eTail started in North America, and was then bought over to Europe, it is interesting to see the different challenges that eRetailers face in both continents. As a born and raised American yourself, what do you enjoy about operating in the European market compared to America and vice versa?
- JE: What I love about Europe is the diversity – so many cultures, so many ideas, so much history. I think this puts Europeans who have worked across countries at an advantage, because I see us all moving towards micro-markets, rather than mass market. Mark Penn’s book, Microtrends, covers the point that Americans are becoming less homogenous, and as retailers, we have to understand this is changing not only what people want, but how they want to receive messages, i.e., marketing. Those Europeans, who have worked cross border and who have been successful, know how to address different needs and cultures with the same product. They’ll strengthen your teams.
In America, I love the creative spirit, which is even livelier now thanks to the recession. Americans in general have a “can do” attitude, and are great problem solvers. They approach challenges with a fascination and an overall resolve that it can be solved. Unlocking that potential in a team is tremendously rewarding. And as far as a retail market specifically, you find the customers being more demanding. They will find new uses for your product that you had not considered.
6. What would you say are your biggest challenges for the future?
- JE: Overall, I don’t think retailers challenges have changed much in decades.
- Location, location, location, but now the real estate is virtual too. For us it is all virtual, but the basics of the problem are the same: Where is the best place for customers to find you?
- Offering what people want. It is the right balance between the staples and the trends to maximize your revenues and profits.
- Providing it how people want. A large part of this is about technology and has been for a long time. Remember how much it used to take to accept credit cards? Tech is always evolving and setting new challenges and opportunities.