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.