mgt 240 lecture e-commerce: successful retailing on the web november 18, 2004
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Mgt 240 LectureMgt 240 Lecture
E-commerce: E-commerce:
Successful Retailing on the Successful Retailing on the WebWeb
November 18, 2004November 18, 2004
MiscellaneousMiscellaneous
Lecture homework 5 due tomorrow Lecture homework 5 due tomorrow by 5pmby 5pm If you have picture files, you have to If you have picture files, you have to
upload them to your dropbox folder tooupload them to your dropbox folder too Second lecture exam on December Second lecture exam on December
22ndnd in class in class Exam review and MIS career session Exam review and MIS career session
on Tuesday, Nov 30on Tuesday, Nov 30thth at regular class at regular class timestimes
Retail on the WebRetail on the Web
E-tail sales figures keep rising at a E-tail sales figures keep rising at a very healthy ratevery healthy rate
More potential customers on the webMore potential customers on the web
Further along the learning curve about Further along the learning curve about what workswhat works
Consolidation in retail categoriesConsolidation in retail categories
Entrance of brick and mortar retailersEntrance of brick and mortar retailers
The State of Retailing The State of Retailing OnlineOnline
What key indicators seem to be improving What key indicators seem to be improving for online retailers?for online retailers? Sales upSales up Revenues upRevenues up Percentage of all retail sales upPercentage of all retail sales up Important in certain categoriesImportant in certain categories Cost of customer acquisition downCost of customer acquisition down Marketing costs downMarketing costs down Conversion rates have improvedConversion rates have improved Highly profitable multi-channel customersHighly profitable multi-channel customers
Retailing on the Web Retailing on the Web ExamplesExamples
AmazonAmazon OverstockOverstock REIREI Land’s EndLand’s End
Retailing on the Web Best Retailing on the Web Best PracticesPractices
Checkout processCheckout process
Converting Browsers to Converting Browsers to CustomersCustomers
How can online stores improve their How can online stores improve their conversion rates?conversion rates? Site ease of useSite ease of use Improve navigationImprove navigation Simplify checkout processSimplify checkout process Opt-in emailsOpt-in emails CommunityCommunity RecommendationsRecommendations
What Causes Customers to What Causes Customers to Buy on Impulse?Buy on Impulse?
What site design features influence What site design features influence impulse buying? Why?impulse buying? Why? Not price!Not price! Search capabilitiesSearch capabilities Category structure and linksCategory structure and links Navigational easeNavigational ease Cluster recommendationsCluster recommendations Personalized recommendationsPersonalized recommendations
Are You Driving Your Are You Driving Your Visitors Away?Visitors Away?
What are some common online store What are some common online store design flaws?design flaws? Lack of quick orientation for first-time Lack of quick orientation for first-time
visitorsvisitors Hard to follow processesHard to follow processes Missing prices or shipping chargesMissing prices or shipping charges Poor graphic designPoor graphic design Poor navigational structurePoor navigational structure
Online Retailing: More than Online Retailing: More than a Web Sitea Web Site
What do customers expect from online What do customers expect from online stores?stores? Trusted brandTrusted brand Attractive surroundingsAttractive surroundings Easy-to-find and always available merchandiseEasy-to-find and always available merchandise Competitive quality and priceCompetitive quality and price Good customer serviceGood customer service Rewards for loyaltyRewards for loyalty Links between online and physical storesLinks between online and physical stores
Convenience is KeyConvenience is Key
Online stores must strive forOnline stores must strive for Ease-of-useEase-of-use Product availabilityProduct availability Site availabilitySite availability Multiple access devicesMultiple access devices Price not as importantPrice not as important Personalization, community important for Personalization, community important for
emotional connectionemotional connection Opt-in emailOpt-in email
Important E-Retail Store Important E-Retail Store FeaturesFeatures
Clarity and ease of navigationClarity and ease of navigation Fast loading pagesFast loading pages Shopper privacyShopper privacy Technical supportTechnical support Return and exchange policiesReturn and exchange policies Right look and feelRight look and feel
How Can Retail Web Sites How Can Retail Web Sites be Designed for Ease of be Designed for Ease of
Use?Use? Fewer and simpler screensFewer and simpler screens Multiple search optionsMultiple search options Appropriate category hierarchiesAppropriate category hierarchies Well thought out navigational structureWell thought out navigational structure Good product informationGood product information Support for ordering processSupport for ordering process Real-time inventory checksReal-time inventory checks Personalization opportunitiesPersonalization opportunities
Acquiring More of the Acquiring More of the Customer’s BusinessCustomer’s Business
How can cross or up-selling be How can cross or up-selling be achieved in an online environment?achieved in an online environment? Complementary or step-up item Complementary or step-up item
recommended on product pagerecommended on product page Recommendations during product Recommendations during product
configurationconfiguration Others?Others?
Fostering Customer LoyaltyFostering Customer Loyalty
How can customer loyalty be How can customer loyalty be fostered by online stores?fostered by online stores? PersonalizationPersonalization Customer serviceCustomer service Loyalty programsLoyalty programs Convenience applicationsConvenience applications
Wish listsWish lists Personalized helpPersonalized help EducationEducation
Determining Retail Web Site Determining Retail Web Site SuccessSuccess
Old measuresOld measures HitsHits Page viewsPage views Session lengthSession length
New methodsNew methods SurveysSurveys InterviewsInterviews Usability testingUsability testing Click stream analysis – data miningClick stream analysis – data mining
Obtaining Customer Obtaining Customer IntelligenceIntelligence
Customer intelligence opportunitiesCustomer intelligence opportunities Web site interaction dataWeb site interaction data Purchase historyPurchase history Registration provides demographic Registration provides demographic
detailsdetails IP address provides information about IP address provides information about
customercustomer
Using Customer IntelligenceUsing Customer Intelligence
Customer Intelligence UsesCustomer Intelligence Uses Use web-based customer knowledge in Use web-based customer knowledge in
other channelsother channels PersonalizationPersonalization Targeted marketingTargeted marketing Site designSite design Product varietyProduct variety Customer segmentationCustomer segmentation
Retail on the WebRetail on the Web
Back end processes important too!Back end processes important too! Order processingOrder processing Customer accountsCustomer accounts Communication with suppliersCommunication with suppliers InventoryInventory FulfillmentFulfillment Customer serviceCustomer service ReturnsReturns
Advantages of Brick and Click Advantages of Brick and Click RetailersRetailers
Back-end infrastructure already in placeBack-end infrastructure already in place WarehousesWarehouses Customer serviceCustomer service Existing supply chainsExisting supply chains Order processing and shippingOrder processing and shipping Brand recognitionBrand recognition Synergies between online and physical Synergies between online and physical
storesstores
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