Transcript Chapter 7_6

NEWS
 Samsung passes Nokia as the 14 year long mobile
phone world leader. (93.4 million handsets in first
quarter)
 Apple Inc. – Stock price fluctuations. Fell from $644 to
$555 in face of innovative based reviews. Now $610 as
quarter earnings turn ut to be more than expected.
 Anyone found out about John Guinther? (It is
better to solve problems than crisis.)
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MAN 470 – Berk TUNCALI
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The internet remains a place where you
can start with nothing and soon
challenge the gods.
-Mark DiMassimo
What are some of the examples?
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Benefits of Selling on the Web
 The opportunity to increase revenues and profits.
 The ability to expand their reach into global markets.
 The ability to remain open 24 hours a day, seven days a
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week.
The capacity to use the web’s interactive nature to enhance
customer service.
The power to educate and to inform.
The ability to lower the cost of doing business.
The ability to spot new business opportunities and to
capitalize on them.
The ability to grow faster.
The power to track sales results.
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Factors to Consider before
Launching into E-Commerce
 How a company exploits the web’s
interconnectivity and the opportunities it creates
to transform relationships with its suppliers and
vendors, its customers, and other external
stakeholders is crucial to its success.
 Web success requires a company to develop a plan
for integrating the web into its overall strategy.
 Developing deep, lasting relationships with
customers takes on even greater importance on the
web.
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 Measuring the success of its web-based sales effort is
essential if a company is to remain relevant to customers
whose tastes, needs, and preferences are always changing.
 What exactly do you expect a web site to do for your
company?
 How much can you afford to invest in an e-commerce
effort?
 What rate of return do you expect to earn on that
investment?
 How long can you afford to wait for that return?
 How well suited are your products and services for selling
on the web?
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 Creating a meaningful presence on the web requires an ongoing
investment of resources-time, money, energy, and talent
 How will the “back office” of your web site work?
 How will you handle order fulfillment?
 What impact, if any, will your web site have on your company’s
traditional channels of distribution?
 What mechanism will your site use to ensure secure customer
transactions?
 How will your company handle customer service for the site?
 How do you plan to promote the site to draw traffic to it?
 What information will you collect from the visitors to your site?
 Have you developed a privacy policy?
 Have you tested your site with real, live customers to make sure that it
is easy to navigate and easy to order from?
 How will you measure the success of your company’s web site?
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Twelve Myths of E-Commerce
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Setting up a business on the web is easy and
inexpensive
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If I launch a site, customers will flock to it
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Making money on the web is easy
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Privacy is not an important issue on the web
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The most important part of any e-commerce effort is
technology
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Strategy? I don’t need a strategy to sell on the web!
Just give me a web site, and the rest will take care of
itself.
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Twelve Myths of E-Commerce
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On the web, customer service is not as important as
it is in a traditional retail store
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Flash makes a web site better
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It’s what’s up front that counts
10. E-commerce will cause brick-and-mortar retail
stores to disappear
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The greatest opportunities for e-commerce lie in the
retail store
12. It’s too late to get on the web
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Strategies for E-Success
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Focus on a Niche in the Market
Develop a Community
Attract Visitors by Giving Away “Freebies”
Make Creative Use of E-mail, but Avoid Becoming a
Spammer
Make Sure Your Web Site Says “Credibility”
Consider Forming Strategic Alliances
Make the Most of the Web’s Global Reach
Promote Your Web Site Online and Offline
Develop an Effective Search Engine Optimization (SEO)
Strategy
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Designing a Killer Web Site
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Understanding Your Target Customer
Give Customers What They Want
Select an Intuitive Domain Name
Make Your Web Site Easy to Navigate
Create a Gift Idea Center
Build Loyalty by Giving Online Customers a Reason to
Return to Your Web Site
 Establish Hyperlinks with Other Businesses, Preferably
Those Selling Products or Services That Complement Yours
 Include an E-mail Option and a Telephone Number in Your
Site
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Designing a Killer Web Site
 Give Shoppers the Ability to Track Their Orders Online
 Offer Web Shoppers a Special All Their Own
 Follow a Simple Design
 Create fast, simple checkout process
 Assure customers that their online transactions are secure
 Post shipping and handling charges up front
 Confirm transactions
 Keep your site updated
 Test your site often
 Consider hiring a professional to design your site
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Tips for Website Design
 Avoid clutter.
 Avoid huge graphic headers that must download first,
prohibiting customers from seeing anything else on
your site as they wait (or most likely, don’t wait).
 Include a menu bar at the top of the page that makes it
easy for customers to fine their way around the site.
 Make the site easy to navigate by including navigation
buttons at the bottom of pages that enable customers
to return to the top of the page or to the menu bar.
 Regularly look for a broken links on your site and
purge them.
 Incorporate meaningful content in the site that is
useful to visitors, well organized, easy to read, and
current.
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Tips for Website Design
 Include a “frequently asked questions” section.
 Be sure to post prominently privacy and return policies
as well as product guarantees the company offers.
 If your site is heavy on content, say, 100 or more pages,
or has more that 100 products for sale, include a search
tool that allows visitors to find the product or
information they want.
 Avoid fancy typefaces and small fonts because they are
too hard to read.
 Be vigilant for misspelled words, typographical errors,
and formatting mistakes; they destroy a site’s
credibility in no time.
 Avoid using small fonts on busy backgrounds; no one
will read them!
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Tips for Website Design
 Use contrasting colors of text and graphics.
 Be careful with frames.
 Test the site on different web browsers and on
different-size monitors.
 Use your web site to collect information for visitors,
but don’t tie up visitors immediately with a tedious
registration process.
 Avoid automated music that plays continuously and
cannot be cut off.
 Remember: Simpler usually is better.
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Tracking Web Results
 Web analytics: Tools that measure web site’s ability to
attract customers, generate sales, and keep ustomers
coming back.
 Sticky site: acts like a flypaper, capturing visitors’
attention and offers them useful information that
makes them stay on the site.
 Viral rate: a website that visitors are willing to share
with their friends.
 Recency: Length of time between a customer’s visit.
 Conversion ratio: proportion of visitors to actual sale.
 Counter: simple tool to count number of visitors.
 Log analysis: tracks visitors actions and prepares
reports for managers.
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Tracking Web Results
 Click stream analysis: allows entrepreneurs to
determine the path visitors take when visiting their
website.
 Cost per action: a measure of performance that
calculates the amount it costs to produce a particular
customer action.
 Cost per order: a measure of performance that
calculates the amount it costs to generate a customer
order..
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Ensuring Web Privacy and
Security
 Privacy
 Take the inventory of the customer data collected
 Develop a company privacy policy for the information
you collect
 Post your company’s privacy policy prominently on your
web site and follow it
 Security
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THANK YOU
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