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Business to ConsumerBusiness to Consumer
Presented by Carol Reavey, Kevin Keely and Martha Harting
Who, What, How, When….. Who, What, How, When…..
Who is on the web?Who is on the web? Who is the target customer?Who is the target customer? What vehicles can be used to reach the What vehicles can be used to reach the
customer?customer? How to Attract the right customerHow to Attract the right customer How to stand out amongst the pack?How to stand out amongst the pack?
DemographicsDemographics
Web and E-commerce Web and E-commerce UsersUsers
We’ve got a new way to talkWe’ve got a new way to talk11
English36.4%
Japanese9.7%Chinese
10.9%
German6.7%
Spanish7.2%
Korean4.5%
Italian3.8%
French3.5%
Other17.4%
Total World Online Population: 619 million
Everybody’s Doing It!Everybody’s Doing It!
The Internet is in 20 The Internet is in 20 nationsnations
E-commerce has E-commerce has 619 million potential 619 million potential customerscustomers
This number is This number is estimated to reach estimated to reach 948 million by 2004948 million by 2004
Who is doing it in the USAWho is doing it in the USA(2)(2)
The total population of internet users in the The total population of internet users in the US is 112 millionUS is 112 million
94.2 million are White (4% growth vs ‘01)94.2 million are White (4% growth vs ‘01) 7.8 million are black (3% growth vs ‘01)7.8 million are black (3% growth vs ‘01) 7.6 million are Hispanic (13% growth vs ‘01)7.6 million are Hispanic (13% growth vs ‘01) 2.4 million are Asian (6% growth vs ‘01)2.4 million are Asian (6% growth vs ‘01)
Frequency vs. PurchaseFrequency vs. Purchase
Only 2.8% of all surfers use the net primarily Only 2.8% of all surfers use the net primarily for purchasing product. This is an increase for purchasing product. This is an increase over 2.6% in 4over 2.6% in 4thth Qtr 2001. Qtr 2001.
The average purchase increased from $298 to The average purchase increased from $298 to $364 in the $250 - $501 range.$364 in the $250 - $501 range.
It also increase from $1,298 to 1,668 in the It also increase from $1,298 to 1,668 in the +1,000 range.+1,000 range.
E-Commerce SalesE-Commerce Sales(10)(10)
4
5
6
7
8
9
10
11
Q41999
Q12000
Q22000
Q32000
Q42000
Q12001
Q22001
Q32001
Q42001
Q12002
Q22002
E-commerce sales rose in the 2nd Qtr 3.7% over first quarter and 24.2% year over year
The US Department of Commerce expects record e-commerce sales for the holiday season.
Doing it with what…..Doing it with what…..(3)(3)
Household income Household income is significant in the is significant in the e-commerce game.e-commerce game.
72% of the surfers in 72% of the surfers in the >$75k bracket the >$75k bracket do product/service do product/service researchresearch 0%
10%20%30%40%50%60%70%80%90%
<35k $35-$50k
$50-$75k
$75-100k
>$100k
When Are We SurfingWhen Are We Surfing(4)(4)
112 million Americans use the 112 million Americans use the InternetInternet
46 million use it primarily at work – 46 million use it primarily at work – 17% higher than last year17% higher than last year
20.4 million of the workers are 20.4 million of the workers are women up by 23%women up by 23%
Men (of course) make up the Men (of course) make up the remaining 25.3 million surfers – 12% remaining 25.3 million surfers – 12% increase over 2001increase over 2001
It’s a man’s worldIt’s a man’s world
Men dominate internet usage in the USA Men dominate internet usage in the USA
Men view an average of 1900 pages Men view an average of 1900 pages versus 1700 pages for womenversus 1700 pages for women
36% of the male usage is for adult 36% of the male usage is for adult entertainment. This is 8% for women.entertainment. This is 8% for women.
Mom is Surfing MoreMom is Surfing More(5)(5) American Moms are on-line an average of 16 American Moms are on-line an average of 16
hours and 52 minutes every week.hours and 52 minutes every week.
Teens log about 12 hours and 17 minutes per Teens log about 12 hours and 17 minutes per week.week.
Mom’s and Hispanics are the fastest growing Mom’s and Hispanics are the fastest growing groups of surfers.groups of surfers.
This may change the way companies market This may change the way companies market and target customers.and target customers.
Top 5 ActivitiesTop 5 Activities(6)(6)
The primary reason for The primary reason for logging on is E-mail.logging on is E-mail.
Products/Services Products/Services activities have increased activities have increased 7% over last year.7% over last year.
Women are sending the Women are sending the greeting cards and greeting cards and entering the sweepstakes entering the sweepstakes (61%).(61%).
E-mailE-mail 93%93%
Search EngineSearch Engine 79%79%
Research Research products/servicesproducts/services
63%63%
Local InformationLocal Information 60%60%
SweepstakesSweepstakes 59%59%
Buzz WordsBuzz Words(7)(7)
To increase strikes the week of October 5To increase strikes the week of October 5thth 2002 2002 web content could have included these:web content could have included these:– HalloweenHalloween– DragonballDragonball– KaZaAKaZaA– CostumesCostumes– NFLNFL– TatoosTatoos– Hurricane LilliHurricane Lilli– Britney SpearsBritney Spears– Yu-Gi-Oh!Yu-Gi-Oh!– The BibleThe Bible
What the E-Shopper WantsWhat the E-Shopper Wants(8)(8)
Courteous and respectful employeesCourteous and respectful employees 73%73%
Consistently good merchandise qualityConsistently good merchandise quality 70%70%
A clean and well-maintained ‘store’A clean and well-maintained ‘store’ 69%69%
Unconditional return of merchandiseUnconditional return of merchandise 69%69%
Visible pricesVisible prices 68%68%
Service versus PriceService versus Price
““Honest Price” is more important than “lowest Honest Price” is more important than “lowest price” to 64% of the American consumersprice” to 64% of the American consumers
““Consistently good merchandise quality” was Consistently good merchandise quality” was seen as essential to 70% of the consumersseen as essential to 70% of the consumers
Balancing Ethical IssuesBalancing Ethical Issues
Mis-TrustMis-Trust(7)(7)
Many Consumers won’t by on-line because they Many Consumers won’t by on-line because they don’t trust the process don’t trust the process
• 68% of the consumers trust small business68% of the consumers trust small business• 58% trust the newspapers and television58% trust the newspapers and television• 55% trust financial institutions (banks, insurance 55% trust financial institutions (banks, insurance
companies)companies)• 54% trust charities and non-profit organizations54% trust charities and non-profit organizations• 47% trust the government47% trust the government• 29% trust the e-commerce community!29% trust the e-commerce community!
SPAMSPAM(8)(8)
SPAM is an ever-increasing issueSPAM is an ever-increasing issue
Hotmail estimates that 10% (1.3million) of Hotmail estimates that 10% (1.3million) of the daily messages sent through Hotmail the daily messages sent through Hotmail are SPAMare SPAM
10% of the working day is spent deleting 10% of the working day is spent deleting SPAMSPAM
The Choice isn’t much of a ChoiceThe Choice isn’t much of a Choice
0%10%20%30%40%50%60%70%80%90%
100%
Required Choice Opt-Out
200020012002
Selling your e-mail infoSelling your e-mail info(9)(9)
Failed dot.coms have sold private Failed dot.coms have sold private informationinformation
They follow the letter of the “Opt Out” law They follow the letter of the “Opt Out” law by selling their web site and all the names by selling their web site and all the names with it. with it.
““It’s a common business practice to “rent” It’s a common business practice to “rent” your customer database” Cheryl Regan your customer database” Cheryl Regan spokesperson for Network Solutions Inc.spokesperson for Network Solutions Inc.
E-Commerce E-Commerce Phase TwoPhase Two
What can we expect to see in the What can we expect to see in the sector as the second era of e-sector as the second era of e-
commerce gathers steam?commerce gathers steam?
New TechnologiesNew Technologies
Automating processesAutomating processes Reducing costs in customer service Reducing costs in customer service Streamlining replenishmentStreamlining replenishment Streamlining aftermarket selling Streamlining aftermarket selling
opportunitiesopportunities
Spending MixSpending Mix
Initial PhaseInitial Phase ComputersComputers BrokeragesBrokerages TravelTravel Books and MusicBooks and Music Auctions Auctions
Generated 75% of Generated 75% of SalesSales(1(1))
Spending MixSpending Mix
Current PhaseCurrent Phase
Only 50% of online sales Only 50% of online sales Clothing, pharmaceuticals, Clothing, pharmaceuticals,
groceries, communication services groceries, communication services and general merchandise make up and general merchandise make up the other 50%.the other 50%.
Groceries went through a valley last Groceries went through a valley last
year but may rebound this year.year but may rebound this year.
Multichannel SellingMultichannel Selling
Systems allow customers to reserve Systems allow customers to reserve product online for in-store pickup. product online for in-store pickup.
Manufacturers sell directManufacturers sell direct
Retailers fear of channel conflicts has Retailers fear of channel conflicts has faded. faded.
Real-Time rulesReal-Time rules
Investing in real-time capabilities to manage Investing in real-time capabilities to manage
orders. orders. Real-time order processing can increase order Real-time order processing can increase order
fulfillment accuracy and productivity by 50%.fulfillment accuracy and productivity by 50%.(2)(2) Real-time supply chain and inventory lets Real-time supply chain and inventory lets
companies know what they have and when it’s companies know what they have and when it’s coming. coming.
Reduce or eliminate stock-outs and overstocks.Reduce or eliminate stock-outs and overstocks.
Improved ProfitabilityImproved Profitability
Improved profitability spurred by Improved profitability spurred by innovations. innovations.
Analyst predict a 20% year-over-year Analyst predict a 20% year-over-year growth.growth.(3)(3)
The Seven Habits of Highly The Seven Habits of Highly Effective Web SitesEffective Web Sites(6)(6)
PersonablePersonable RemembranceRemembrance(4)(4)
Flexible InteractionFlexible Interaction User ProfilingUser Profiling Abstract InteractionAbstract Interaction(5)(5)
Context Creation and UseContext Creation and Use Dialogue Structuring and ManagementDialogue Structuring and Management
Five E-Commerce Trends Five E-Commerce Trends to Watchto Watch
TrendsTrends
Multichannel RetailingMultichannel Retailing(7)(7)
Increased Customer SatisfactionIncreased Customer Satisfaction(8)(8)
Consumers do their own thingConsumers do their own thing(9)(9)
Death of the Mid-Size E-tailerDeath of the Mid-Size E-tailer More Profit – 70% of the top 40 sites are More Profit – 70% of the top 40 sites are
profitable versus 30% last year.profitable versus 30% last year.
Business Models on the WebBusiness Models on the Web(10)(10)
Business models are perhaps the most Business models are perhaps the most discussed and least understood aspect of discussed and least understood aspect of the web. the web.
The web changed traditional business The web changed traditional business models. models.
Little clear-cut evidence of exactly what Little clear-cut evidence of exactly what this means. this means.
Auctions – An old way of doing business Auctions – An old way of doing business popularized and broadened.popularized and broadened.(11)(11)
Models ContinuesModels Continues
Varied ImplementationVaried Implementation
Blended ModelsBlended Models
Intellectual PatentsIntellectual Patents
Categories of Business ModelsCategories of Business Models
BrokerageBrokerage AdvertisingAdvertising
InfomediaryInfomediary MerchantMerchant
ManufacturerManufacturer AffiliateAffiliate
CommunityCommunity SubscriptionSubscription
UtilityUtility
Brokerage ModelBrokerage Model Marketplace Exchange – OrbitzMarketplace Exchange – Orbitz Buy/Sell Fulfillment – CarsDirectBuy/Sell Fulfillment – CarsDirect Demand Collection System - Priceline.comDemand Collection System - Priceline.com Auction Broker - eBay Auction Broker - eBay Transaction Broker – PayPalTransaction Broker – PayPal Bounty Broker – BountyQuestBounty Broker – BountyQuest Distributor – QuestDistributor – Quest Search agent - Deal timeSearch agent - Deal time Virtual Mall - ChoiceMallVirtual Mall - ChoiceMall
Advertising ModelAdvertising Model
Portal – YahooPortal – Yahoo Personalized Portal - MyYahoo Personalized Portal - MyYahoo Niche Portal - iVillageNiche Portal - iVillage Classifieds - Monster.com Classifieds - Monster.com Registered Users - Anytime's Digital Registered Users - Anytime's Digital Query-based Paid Placement – GoogleQuery-based Paid Placement – Google Contextual - GatorContextual - Gator
Infomediary ModelInfomediary Model
Advertising Networks – DoubleClickAdvertising Networks – DoubleClick
Audience Measurement Services – Audience Measurement Services – NielsonNielson
Incentive Marketing - MyPoints Incentive Marketing - MyPoints
Metamediary - EdmundsMetamediary - Edmunds
Merchant ModelMerchant Model
Virtual Merchant - Amazon.comVirtual Merchant - Amazon.com
Catalog Merchant - Land’s EndCatalog Merchant - Land’s End
Click and Mortar - Barnes &NobleClick and Mortar - Barnes &Noble
Bit Vendor - EyewireBit Vendor - Eyewire
Community ModelCommunity Model Content Service - NetflixContent Service - Netflix
Person-to-person Networking Person-to-person Networking Services – ClassmatesServices – Classmates
Trust Services - TrusteTrust Services - Truste
Subscription ModelSubscription Model
Voluntary Contributor Model - WCPE.orgVoluntary Contributor Model - WCPE.org
Knowledge Networks – AllExpertsKnowledge Networks – AllExperts
Internet Service Provider - AOLInternet Service Provider - AOL
Other ModelsOther Models
Affiliate Model - Amazon.comAffiliate Model - Amazon.com
Manufacturer Model – DellManufacturer Model – Dell
Utility Model - SlashdotUtility Model - Slashdot
Three Different Business Three Different Business ModelsModels
e-Bay is #1e-Bay is #1
e-Bay is the #1 in sales.e-Bay is the #1 in sales.(12) (12)
$1.1 billion in revenues in 2002$1.1 billion in revenues in 2002 Earnings .73 - .75 per share.Earnings .73 - .75 per share. Brokerage model / Auction Brokerage model / Auction
Broker / Transaction Broker. Broker / Transaction Broker.
Holiday StrategyHoliday Strategy
Printed Catalogs in 2001Printed Catalogs in 2001 Amazon.com is copying the idea.Amazon.com is copying the idea. Bidders wait to find out if they won, e-Bidders wait to find out if they won, e-
Bay instituted a “buy it now” feature.Bay instituted a “buy it now” feature. Also advertised on AOL Time Warner Also advertised on AOL Time Warner
cable and network outlets to promote cable and network outlets to promote their site for holiday gifts. their site for holiday gifts. (13)(13)
Amazon.com is # 2Amazon.com is # 2
Amazon.com is # 2 with Online sales to Amazon.com is # 2 with Online sales to
U.S. consumers estimated between 1.7 – U.S. consumers estimated between 1.7 – 1.9 billion.1.9 billion. (14)(14)
Amazon made a profit for the first time, in Amazon made a profit for the first time, in the last quarter. It has not made a profit for the last quarter. It has not made a profit for a fiscal year. a fiscal year.
Merchant Model / Virtual MerchantMerchant Model / Virtual Merchant
Product OfferingProduct Offering
Free electronic greeting cardsFree electronic greeting cards On-line auctionsOn-line auctions Millions of books, CD’s, videos, DVD’s, Millions of books, CD’s, videos, DVD’s, Toys and gamesToys and games ElectronicsElectronics KitchenwareKitchenware Computers and moreComputers and more(15)(15)
Holiday StrategyHoliday Strategy
Free ShippingFree Shipping
Quixtar.com is # 7Quixtar.com is # 7
400-450 million in sales in the U.S. 400-450 million in sales in the U.S. (16)(16) Privately Held Privately Held Believed to be profitable. Believed to be profitable. No marketing expensesNo marketing expenses Company world-wide sales for fiscal Company world-wide sales for fiscal
2002 where $4.5 billion. 2002 where $4.5 billion. (17)(17)
Unique Merchant Model – could be Unique Merchant Model – could be Virtual Merchant / Catalog Merchant Virtual Merchant / Catalog Merchant
Amway - Person-to-person multilevel marketing. Amway - Person-to-person multilevel marketing. In business since 1959In business since 1959 Manufacture items for nutrition, wellness, beauty Manufacture items for nutrition, wellness, beauty
and home products. Vitamins, food supplements and home products. Vitamins, food supplements and cosmetics are among the company's leading and cosmetics are among the company's leading global brands. global brands.
Manufacturers pay to have products sold. Manufacturers pay to have products sold. Order a car direct from the manufacturer Order a car direct from the manufacturer
delivered to the nearest dealership. delivered to the nearest dealership. Bass Pro, Chevrolet, Ford, IBM, are just a few Bass Pro, Chevrolet, Ford, IBM, are just a few
companies that allow direct selling from Quixtar.companies that allow direct selling from Quixtar.
Pay to Use and EarnPay to Use and Earn Pay to use this site. Pay to use this site. IBO to purchase from this site. IBO to purchase from this site. Earn bonuses or cash based on product Earn bonuses or cash based on product
sales. sales. Currently 3.3 million distributors that Currently 3.3 million distributors that
teach their people how to shop the site. teach their people how to shop the site. Infrequent catalog distribution.Infrequent catalog distribution.
Could other models be used to describe this Could other models be used to describe this e-tailer? Which models?e-tailer? Which models?
e-Commerce: Steps to Successe-Commerce: Steps to Success
Gain TrustGain Trust
PersonalizationPersonalization
Multi-channelingMulti-channeling
Gaining Trust OnlineGaining Trust Online11
Why don’t consumers trust cyberspace?Why don’t consumers trust cyberspace?– No close physical presenceNo close physical presence
Incomplete, ambiguous physical locationIncomplete, ambiguous physical location
No people to talk toNo people to talk to
Reputation, size, and background unknownReputation, size, and background unknown
– History of security and privacy problemsHistory of security and privacy problemsPrivacy invasion and abuse of customer Privacy invasion and abuse of customer informationinformation
– Potential for misrepresentation and fraudPotential for misrepresentation and fraud““On the Internet nobody knows that you are a dog”On the Internet nobody knows that you are a dog”
How to gain trust online:How to gain trust online:– Similar backgroundsSimilar backgrounds
Translate into customer’s languageTranslate into customer’s language
References regarding adherence to local regulations and References regarding adherence to local regulations and business practicesbusiness practices
Promotional campaigns to stimulate repeat businessPromotional campaigns to stimulate repeat business
– PersonalizationPersonalizationPhotos and video clips of store ownersPhotos and video clips of store owners
Order confirmationOrder confirmation
Stronger product warrantiesStronger product warranties
Customer supportCustomer support
– ReputationReputationTrust can be transferred – link site to other reputable sitesTrust can be transferred – link site to other reputable sites
Easier to obtain when part of a large chainEasier to obtain when part of a large chain
Level of Trust OnlineLevel of Trust Online22
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Q4 2001 Q3 2002
Communication
Purchases
Playing Games
Finances/Banking
Financing/banking has successfully gained trust online, while other uses have declined in overall trust.3
The Personal TouchThe Personal Touch44
Benefits:Benefits:– Forms a relationship with the customerForms a relationship with the customer– Increases trustIncreases trust– Increases sales and repeat businessIncreases sales and repeat business
Difficulties:Difficulties:– Gathering dataGathering data– Analyzing dataAnalyzing data– Utilizing dataUtilizing data– ExpenseExpense
Virtual 3D models – Lands’ EndVirtual 3D models – Lands’ End
Live chat feature – Lands’ EndLive chat feature – Lands’ End
E-mail reminders – Drugstore.comE-mail reminders – Drugstore.com
Suggestions for visitors – American Greetings Suggestions for visitors – American Greetings and 1-800-Flowers.comand 1-800-Flowers.com
One-click shopping – Amazon.comOne-click shopping – Amazon.com
Records of previous purchases – Office DepotRecords of previous purchases – Office Depot
Smart recommendation engines – Amazon.comSmart recommendation engines – Amazon.com66
Personalization on the WebPersonalization on the Web55
Multi-channelingMulti-channeling
The Future of E-Commerce?The Future of E-Commerce?
The ChannelsThe ChannelsWeb Site –Click and Mortar StoreWeb Site –Click and Mortar StoreBrick and Mortar StoreBrick and Mortar StoreCatalogCatalog
The more channels a customer uses, The more channels a customer uses, the more valuable they are to a the more valuable they are to a business.business.77
(e.g., JC Penney found their 3-(e.g., JC Penney found their 3-channel customers are worth channel customers are worth $1000/year; 2-channel customers $1000/year; 2-channel customers $700/year; 1-channel customers only $700/year; 1-channel customers only $300/year.)$300/year.)
The New CustomerThe New Customer88
Customers want old-fashioned service with all Customers want old-fashioned service with all the new tools and conveniencethe new tools and convenience
According to Brylane e-commerce, web sites According to Brylane e-commerce, web sites have to “Sail the Seven C’s”have to “Sail the Seven C’s”
““You must You must CCombine ombine CCustomized ustomized CContent, ontent, CCommunity and ommunity and CCommerce to provide ommerce to provide CControl ontrol and and CConvenience.”onvenience.”
Benefits of Multi-Channel Benefits of Multi-Channel IntegrationIntegration99
Capture sales regardless of channelCapture sales regardless of channelBuild and strengthen customer loyaltyBuild and strengthen customer loyaltyImprove direct marketing effortsImprove direct marketing effortsSeamless service experienceSeamless service experienceImproved demand planning and product Improved demand planning and product distributiondistributionIncreased revenue and gross marginIncreased revenue and gross margin
Disadvantages of Multi-Disadvantages of Multi-ChannelingChanneling99
Costs Costs (specialty or medium-sized department store)(specialty or medium-sized department store)
– Brick and mortar costs range from an average of $8 Brick and mortar costs range from an average of $8 to $28 million for startup and can expect to break to $28 million for startup and can expect to break even in about two yearseven in about two years
– E-commerce sites cost $73 million to $1.2 billion E-commerce sites cost $73 million to $1.2 billion break-even volumebreak-even volume
– May not generate positive returns quicklyMay not generate positive returns quickly
May distract from core businessMay distract from core businessActive shoppers may prove to be a liabilityActive shoppers may prove to be a liability1010
– More deal drivenMore deal driven– Look for costly site features such as live helpLook for costly site features such as live help
Tier 1 - Multi-Channel Functionality Tier 1 - Multi-Channel Functionality – Low Risk– Low Risk99
Accept returns in physical store without exceptionAccept returns in physical store without exceptionOffer store pickupsOffer store pickupsAccept retail store credit card onlineAccept retail store credit card onlineProvide basic customer service Provide basic customer service – Frequently asked questions, how-to guides, warranty Frequently asked questions, how-to guides, warranty
information, etc.information, etc.
Retail store locator informationRetail store locator informationCoordinate logo, information, graphics, etc.Coordinate logo, information, graphics, etc.Consistent messaging across all channelsConsistent messaging across all channelsUse e-mail campaigns to reinforce marketing efforts Use e-mail campaigns to reinforce marketing efforts along with direct mail, billing inserts, and other along with direct mail, billing inserts, and other promotional advertisingpromotional advertising
Tier 2 – Multi-Channel Functionality Tier 2 – Multi-Channel Functionality – Some Risk– Some Risk99
Install in-store kiosks for online orderingInstall in-store kiosks for online ordering
Integrate loyalty and registry programsIntegrate loyalty and registry programs
Implement ERMS (e-mail response Implement ERMS (e-mail response management system)management system)
Tier 3 – Multi-Channel Functionality Tier 3 – Multi-Channel Functionality – Substantial Risk– Substantial Risk99
Web-enable point of sale (POS) systems to Web-enable point of sale (POS) systems to bring the Internet into the store (very expensive)bring the Internet into the store (very expensive)
Use hand-held/wireless devices process Use hand-held/wireless devices process web/store orders.web/store orders.
Implement “guided merchandising” – use Implement “guided merchandising” – use customer relationship information and blend with customer relationship information and blend with product descriptions and merchandising rulesproduct descriptions and merchandising rules
Multi-Channel LeadersMulti-Channel Leaders99
Office Supply RetailersOffice Supply Retailers– Office DepotOffice Depot– OfficeMaxOfficeMax– StaplesStaples
Consumer Electronic Consumer Electronic RetailersRetailers– Circuit CityCircuit City– Best BuyBest Buy– CompUSACompUSA
OthersOthers– Department Stores-Sears, Department Stores-Sears,
JC PenneyJC Penney– Pharmacies-WalgreensPharmacies-Walgreens– Discount Stores – WalMart, Discount Stores – WalMart,
K-Mart, TargetK-Mart, Target
Multi-Channel ChallengesMulti-Channel Challenges88
Plan promotions as a single company with Plan promotions as a single company with multiple channels, not separatelymultiple channels, not separatelyIntegrate online into offlineIntegrate online into offline– Promote web benefits and URLs in all Promote web benefits and URLs in all
communicationscommunications
Promote offline into onlinePromote offline into online– Mention in-store promotions, store locatorsMention in-store promotions, store locators– Provide catalog requestsProvide catalog requests
Pay attention to time-sensitivityPay attention to time-sensitivity– Just because e-mails can be sent quickly, this does Just because e-mails can be sent quickly, this does
not guarantee that your target market will be not guarantee that your target market will be accessed immediately or that it will even be read at accessed immediately or that it will even be read at all.all.
Keys to Multi-Channel SuccessKeys to Multi-Channel Success99
Integrate in stagesIntegrate in stages
Evaluate the organizational impactEvaluate the organizational impact
Implement the right multi-channel approach for Implement the right multi-channel approach for your businessyour business
Get the organization readyGet the organization ready– Collect customer data – determine target customersCollect customer data – determine target customers– Focus on customer incentivesFocus on customer incentives
PricingPricing
Return policiesReturn policies
SupportSupport
Most Popular Web SitesMost Popular Web Sites1111
Nielsen Net Ratings for Week Ending 10/13Nielsen Net Ratings for Week Ending 10/13
Top Sites Overall: Top Sites Overall:
Most Popular Web SitesMost Popular Web Sites1111
SportsSports
EntertainmentEntertainment
MusicMusic
MovieMovie
TVTV
NewsNews
Sources for DemographicsSources for Demographics1.1. Global Internet Statistics (by Language) Global Internet Statistics (by Language)
www.global-research.biz/globstats/index.php3www.global-research.biz/globstats/index.php3 (9/30/02) (9/30/02)2.2. Saunders, Christopher, “Latinos Outpace Other Groups’ On-line growth Saunders, Christopher, “Latinos Outpace Other Groups’ On-line growth
www.cyberatlas.internet.com/big_picture/demographics/article/0,,5901_1www.cyberatlas.internet.com/big_picture/demographics/article/0,,5901_1428231,00.html428231,00.html 10/20/02. 10/20/02.
3.3. Greenspan, Robyn, “High-Speed Connects High-Income HomesGreenspan, Robyn, “High-Speed Connects High-Income Homeswww.cyberatlas.internet.com/markets/article/0,,10099_1467471,00.htmlwww.cyberatlas.internet.com/markets/article/0,,10099_1467471,00.html9/20/02.9/20/02.
4.4. Cyberatlas staff, “Traffic Patterns for August 2002” Cyberatlas staff, “Traffic Patterns for August 2002” www.cyberatlas.internet.comwww.cyberatlas.internet.com/big /big picture.compicture.com (9/12/02). (9/12/02).
5.5. Saunders, Christopher, “Moms, Hispanics Increasing Web Use Saunders, Christopher, “Moms, Hispanics Increasing Web Use www.cyberatlas.internet.com/big_picture/demographics/article/0,,5901_1www.cyberatlas.internet.com/big_picture/demographics/article/0,,5901_1041581041581 (05/08/02). (05/08/02).
6.6. Greenspan, Robyn, American Surfers Keep It Simple Greenspan, Robyn, American Surfers Keep It Simple www.cyberatlas.internet.com/big_picture/geographics/article/0,,5901_146www.cyberatlas.internet.com/big_picture/geographics/article/0,,5901_1466661.html6661.html 9/19/02 9/19/02
Demographics Cont.Demographics Cont.
7.7. Greenspan, Robyn, “Consumers Rank Trust Above Low” Greenspan, Robyn, “Consumers Rank Trust Above Low” www.cyberatlas.internet.com/marketing/retailing/article/0,60611014831.htmlwww.cyberatlas.internet.com/marketing/retailing/article/0,60611014831.html4/23/02.4/23/02.
8.8. Staff, “Spam poses threat to privacy” Staff, “Spam poses threat to privacy” BBC News World Edition, Technoligies BBC News World Edition, Technoligies 10/16/0210/16/02
9. Greg Sandavol, “Failed dot-coms may be selling your private information” 9. Greg Sandavol, “Failed dot-coms may be selling your private information” www.news.com/2100-1017-242649.html www.news.com/2100-1017-242649.html 06/29/0006/29/00
10. U.S. Commerce 10. U.S. Commerce www.uscomerce.gov 10/20/02www.uscomerce.gov 10/20/02
Sources for the Second PhaseSources for the Second Phase
1.1. LeClaire, Jennifer, “Phase Two for E-Commerce”, LeClaire, Jennifer, “Phase Two for E-Commerce”, E-Commerce E-Commerce TimesTimes 8.1 (2002), 26 Oct 2002, 8.1 (2002), 26 Oct 2002, http://www.ecommercetimes.com/perl/story/18840.htmlhttp://www.ecommercetimes.com/perl/story/18840.html
2.2. LeClaire, Jennifer, “Phase Two for E-Commerce”, LeClaire, Jennifer, “Phase Two for E-Commerce”, E-Commerce E-Commerce TimesTimes 8.1 (2002), 26 Oct 2002, 8.1 (2002), 26 Oct 2002, http://www.ecommercetimes.com/perl/story/18840.htmlhttp://www.ecommercetimes.com/perl/story/18840.html
3.3. LeClaire, Jennifer, “Phase Two for E-Commerce”, LeClaire, Jennifer, “Phase Two for E-Commerce”, E-Commerce E-Commerce TimesTimes 8.1 (2002), 26 Oct 2002, 8.1 (2002), 26 Oct 2002, http://www.ecommercetimes.com/perl/story/18840.htmlhttp://www.ecommercetimes.com/perl/story/18840.html
4.4. Martin, Mike, “The Seven Habits of Highly Effective Web Sites”, Martin, Mike, “The Seven Habits of Highly Effective Web Sites”, CRM CRM Daily.comDaily.com, 9.3 (2002), 26 Aug. 2002, , 9.3 (2002), 26 Aug. 2002, http://www.crmdaily.com/perl/story/19270.htmlhttp://www.crmdaily.com/perl/story/19270.html
5.5. Martin, Mike, “The Seven Habits of Highly Effective Web Sites”, Martin, Mike, “The Seven Habits of Highly Effective Web Sites”, CRM CRM Daily.comDaily.com, 9.3 (2002), 26 Aug. 2002, , 9.3 (2002), 26 Aug. 2002, http://www.crmdaily.com/perl/story/19270.htmlhttp://www.crmdaily.com/perl/story/19270.html
Phase Two Cont.Phase Two Cont.6. Martin, Mike, “The Seven Habits of Highly Effective Web Sites”, 6. Martin, Mike, “The Seven Habits of Highly Effective Web Sites”, CRM CRM
Daily.comDaily.com, 9.3 (2002), 26 Aug. 2002, , 9.3 (2002), 26 Aug. 2002, http://www.crmdaily.com/perl/story/19270.htmlhttp://www.crmdaily.com/perl/story/19270.html
7. Regan, Keith, “ Five E-Commerce Trends to Watch”. 7. Regan, Keith, “ Five E-Commerce Trends to Watch”. E-Commerce E-Commerce TimesTimes, 3.3 (2002), 26 Aug 2002, , 3.3 (2002), 26 Aug 2002, http://www.ecommercetimes.com/perl/story/16967.htmlhttp://www.ecommercetimes.com/perl/story/16967.html
8. Regan, Keith, “ Five E-Commerce Trends to Watch”. 8. Regan, Keith, “ Five E-Commerce Trends to Watch”. E-Commerce E-Commerce TimesTimes, 3.3 (2002), 26 Aug 2002, , 3.3 (2002), 26 Aug 2002, http://www.ecommercetimes.com/perl/story/16967.htmlhttp://www.ecommercetimes.com/perl/story/16967.html
9. Regan, Keith, “ Five E-Commerce Trends to Watch”. 9. Regan, Keith, “ Five E-Commerce Trends to Watch”. E-Commerce E-Commerce TimesTimes, 3.3 (2002), 26 Aug 2002, , 3.3 (2002), 26 Aug 2002, http://www.ecommercetimes.com/perl/story/16967.htmlhttp://www.ecommercetimes.com/perl/story/16967.html 10. Rappa, 10. Rappa, Michael, “ Business Models on the Web” Michael, “ Business Models on the Web” Managing the Digital Managing the Digital EnterpriseEnterprise, 27 Aug 2002, , 27 Aug 2002, http://www.digitalenterprise.org/models/models_text.html http://www.digitalenterprise.org/models/models_text.html
11. Rappa, Michael, “ Business Models on the Web” 11. Rappa, Michael, “ Business Models on the Web” Managing the Digital Managing the Digital EnterpriseEnterprise, 27 Aug 2002, , 27 Aug 2002, http://.digitalenterprise.org/models/models_text.html http://.digitalenterprise.org/models/models_text.html
Phase Two Cont.Phase Two Cont.
12. “Top 100 Internet Retailers”, 12. “Top 100 Internet Retailers”, Russell Reynolds AssociatesRussell Reynolds Associates, 7.6 (2002), , 7.6 (2002), 24 Aug 2002, http://www.stores.org/archives/ootop100int_.html 24 Aug 2002, http://www.stores.org/archives/ootop100int_.html
13. Saunders, Christopher, “e-Bay Taps Catalogs for Holiday Push” 13. Saunders, Christopher, “e-Bay Taps Catalogs for Holiday Push” Ecommerce NewsEcommerce News, 11.27 (2001), 26 Aug 2002, , 11.27 (2001), 26 Aug 2002, http://ecommerce.internet.com/news/news/print/0,,10375_929661,0... http://ecommerce.internet.com/news/news/print/0,,10375_929661,0... 14. “Top 100 Internet Retailers”, 14. “Top 100 Internet Retailers”, Russell Reynolds AssociatesRussell Reynolds Associates, 7.6 , 7.6 (2002), 24 Aug 2002, (2002), 24 Aug 2002, http://www.stores.org/archives/ootop100int_.htmlhttp://www.stores.org/archives/ootop100int_.html
15. “About Amazon.com”, 15. “About Amazon.com”, Amazon.comAmazon.com, 27 Aug 2002, , 27 Aug 2002, http://www.amazon.com/exec/obidos/subst/misc/company-info.htmlhttp://www.amazon.com/exec/obidos/subst/misc/company-info.html
16. “Top 100 Internet Retailers”, 16. “Top 100 Internet Retailers”, Russell Reynolds AssociatesRussell Reynolds Associates, 7.6 (2002), , 7.6 (2002), 24 Aug 2002, http://www.stores.org/archives/ootop100int_.html 24 Aug 2002, http://www.stores.org/archives/ootop100int_.html
17. “Alticor Inc”, 26 Aug 2002, 17. “Alticor Inc”, 26 Aug 2002, http://www.alticor.com/news/pop_alticor_fact.html http://www.alticor.com/news/pop_alticor_fact.html
1. Jarvenpaa, S., and Grazioli, S. “Surfing among sharks: how to gain trust in cyberspace”Mastering Informational Management. Prentice Hall, London, 2000. pgs 197-201.
2. Greenspan, Robyn. “More Users, Less Trust”. http://www.cyberatlas.internet.com/markets/retailing/print/0,,6061_1483061,00.html, 10/24/2002.
3. Taylor, Charlie. “Banking on success” http://www.nua.ie/surveys/analysis/weekly_editorial/archives/issue1no316.html, 10/30/2002.
4. Walsh, John. “Websites with a personal touch” Mastering Informational Management. Prentice Hall, London, 2000. pgs 201-204.
5. Regan, Keith. “The Best of E-Commerce” E-Commerce Times http://www.ecommercetimes.com/perl/story/19323.html, 11/5/2002.
6. Hirsh, L, and LeClaire, J. “Kings of Repeat E-Business” E-Commerce Times http://www.crmdaily.com/perl/printer/19137/, 10/30/2002.
Sources Step to SuccessSources Step to Success
7. Bartram, Michelle. “Multi-Channel Secrets to Success” http://www.webpractices.com/slideshows/Multichannel%20Success/multi_2Tech.pdf, 10/30/2002.
8. Bartram, Michelle. “Multi-Channel Secrets to Success” http://www.webpractices.com/slideshows/Multichannel%20Success/multi_2Tech.pdf, 10/31/2002.
9. “Multi-Channel Integration, A Retailers Perspective” Escalate http://www.escalate.com/whitepaper3.html, 10/31/2002.
10. Cox, Beth. “Are Multi-Channel Shoppers a Liability?” http://www.internetnews.com/ec-news/article.php/1442631, 11/5/2002.
11. Internet: Nielsen Net Ratings: Nielsen Net Ratings for Week Ending 10/13. http://alliance.zap2it.com/zap2it/zp_int_nielsen_net_ratings/1,1648,173__,00.html, 10/30/2002.
Step for Success Cont.Step for Success Cont.