Transcript scarborough_ees bm11e_ppt13 - Edip TEKER

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall
13-1
Chapter 13
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall
13-2
The most successful companies embrace the
Internet as a mechanism for transforming their
companies and for changing everything about the
way they do business
E-commerce has launched a revolution, a new
industrial order
Showrooming
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-3
In the world of e-commerce, speed and flexibility
matter much more than size
High-volume, low-margin, commodity products are
best suited for selling on the Web
Globally, people spend 35 billion hours online per
month
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-4
How People Spend Their Time Online
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-5
Global B2C E-Commerce Sales by Region: Percentage of Global Total
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-6
U.S. Online and Web Influenced Retail Sales, 2011-2016 (in Billions of $)
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-7
Ad-ology study shows that 82% of small companies
have Web sites, but many do not engage in ecommerce because their web sites cannot accept
payments
Roadblocks:
Lack of knowledge
Cost
Uncertainty about the value of a web site
Online security issues
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-8
Before launching an e-commerce effort, consider:
Success requires a company to develop a plan for
integrating the Web into its overall strategy
How a company exploits the Web’s interconnectivity
and the opportunities it creates to transform
relationships with suppliers, customers, and others
is crucial to its success
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-9
Developing a deep, lasting relationship with
customers takes on even greater importance on the
Web
Creating a meaningful presence on the Web
requires an ongoing investment of resources – time,
money, energy, and talent
Measuring the success of a Web-based sales effort
is essential to remaining relevant to customers
whose tastes, needs, and preferences constantly
change
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-10
The following are essential to e-commerce success:
Acquiring customers
Optimizing customers
Maximizing Web site performance
Ensuring a positive user experience
Retaining customers
Use Web analytics as part of a cycle of continuous
improvement
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-11
Myth 1: If I launch a site, customers will flock to it
Myth 2: Online customers are easy to please
Myth 3: Making money on the Web is easy
Myth 4: Privacy is not an important issue on the Web
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-12
Privacy on the Web does matter!
The TRUSTe Privacy Index reports that 90% of adults
in the U.S. worry about privacy online
Tips:
Post a privacy policy and stick to it
Safeguard information your company collects from
customers
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-13
Myth 1: If I launch a site, customers will flock to it
Myth 2: Online customers are easy to please
Myth 3: Making money on the Web is easy
Myth 4: Privacy is not an important issue on the Web
Myth 5: 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
Myth 6: The most important part of any e-commerce effort is
Technology
Myth 7: On the Web, customer service is not as important as
it is in a traditional retail store
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-14
Average conversion rate for e-commerce sites is 2.1%
The most common reasons for not purchasing
include:
Unexpected shipping and handling charges (70%)
Insufficient product information (56%)
Lack of trust or security concerns about the site
(50%)
Difficulty navigating the Web site to find the right
product (46%)
Companies can win back sales by sending a prompt
follow-up e-mail
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-15
Myth 8: Flash makes a Web site better
A site that performs efficiently and loads quickly is a far
better selling tool than one that is filled with “cornea
gumbo,” slow to download, and confusing to shoppers
Akamai study: 47% of shoppers expect a Web page to
load within 2 seconds and 40% of shoppers will
abandon a site that takes more than 3 seconds to load
Myth 9: It’s what’s up front that counts
Virtual order fulfillment
Myth 10: My business doesn’t need a Web site
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-16
Average Time Americans Spend Online and Shopping Online Per Month
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-17
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”
Open rate
Click-through rate
Triggered e-mails
Sell the Experience
Make Sure Your Web Site Says “Credibility”
Make the Most of the Internet’s Global Reach
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-18
Markets with the Highest Online Sales Potential
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-19
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”
Open rate
Click-through rate
Triggered e-mails
Sell the Experience
Make Sure Your Web Site Says “Credibility”
Make the Most of the Internet’s Global Reach
Go Mobile
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-20
U.S. Mobile Commerce Sales
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-21
Go Mobile
Promote Your Web Site Online and Offline
Use Social Media Tools to Attract and Retain Customers
Mashup
Really Simple Syndication (RSS)
Social Media
Wikis
Widgets
Capture Local Traffic
Develop an Effective Search Optimization Strategy
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-22
Search engine optimization (SEO) strategies: essential
to online companies’ success
The most common tool that people use to find the
products and services they want
89% of shoppers say they use search engines to find
information about products and services
Search engines drive more traffic to e-commerce sites
(32.0 percent) than either e-mail (4.3 percent) or social
media (1.9 percent) and generate higher average order
values ($90.40) than either e-mail ($82.72) or social
media ($64.19)
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-23
Natural (organic) listings: the result of “spiders,”
powerful programs that crawl the Web, looking at key
words, links, and other data
Paid (sponsored) listings: short text ads with links to
the sponsoring company’s Web site that appear on the
results page of a search engine
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-24
Use paid listings to accomplish what natural listings
cannot
Google, Microsoft Bing, Yahoo!, and AOL – account for
98% of all searches in the U.S.
Average cost of a keyword has risen from 39¢ in 2004 to
53¢ today
Beware of click fraud!
Estimate: Pay-per-click fraud rate is 19%
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-25
Go Mobile
Promote Your Web Site Online and Offline
Use Social Media Tools to Attract and Retain Customers
Mashup
Really Simple Syndication (RSS)
Social Media
Wikis
Widgets
Capture Local Traffic
Develop an Effective Search Optimization Strategy
Designing a Killer Web Site
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-26
Designing a Killer Web Site
Decide How to Bring Your Site to Life
Start With Your Target Customer
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-27
Online Activities by Generation
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-28
Designing a Killer Web Site
Decide How to Bring Your Site to Life
Start With Your Target Customer
Give Customers What They Want
Boston Consulting Group: improvements to
customers’ online shopping experience that would
motivate them to shop more online are:
Free shipping (74 percent), lower prices (56
percent), free returns (35 percent), more secure
Web sites (25 percent), and better views of virtual
products (25 percent
Select an Intuitive Domain Name
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-29
Select an Intuitive Domain Name
Select a domain name that is consistent with the
image you want to create for your company and
register it
Short
Memorable
Indicative of a company’s business
Easy to spell
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-30
Designing a Killer Web Site
Decide How to Bring Your Site to Life
Start With Your Target Customer
Give Customers What They Want
Select an Intuitive Domain Name
Make Your Web Site Easy To Navigate
Landing pages
Bounce rate
Provide Customer Ratings and Reviews
Offer Suggestions for Related Products
Add Wish List Capability
Create a Gift Idea Center
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-31
Establish the Appropriate Call to Action on Each Page
Build Loyalty By Giving Online Customers A Reason To
Return
Establish Hyperlinks With Other Businesses, Preferably
Those Selling Products or Services That Complement
Yours
Include An E-mail Option and a Telephone # On Your Site
Offer Shoppers Online Tracking
Offer Web Specials
Use the Power of Social Media
Use Customer Testimonials
Follow a Simple Design
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-32
Follow a Simple Design
Avoid clutter
Use less text on the home page
Avoid huge graphics
Include a menu bar at the top of the page
Include navigation buttons
Minimize the number of clicks required to a page
Incorporate meaningful content into the site
Include an “FAQ” section
Include privacy and return policies
Avoid fancy typefaces and small fonts
Watch for “typos” and misspelled words
Avoid small fonts on “busy” backgrounds
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-33
Use contrasting colors for text and graphics
Be careful with frames
Test the site on different browsers and different size
monitors
Collect information from visitors, but don’t put them
through a tedious registration process
Include a search function and company contact
information
Avoid automated music
Make sure the page looks appealing
Remember: Simpler is better
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-34
Follow a Simple Design
Assure Customers That Their Online Transactions Are
Secure
Post Shipping and Handling Charges Up Front
Create a Fast, Simple Checkout Process
Confirm Transactions
Keep Your Site Fresh
Rely on Analytics to Improve Your site
Test Your Site Often
Consider Hiring A Professional To Designer
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-35
Software Solutions
Web analytics: tools that measure a Web site’s ability
to attract customers, generate sales, and keep
customers coming back
Commerce metrics
Visitor segmentation measurements
Content reports
Process measurements
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-36
Other measures of Web site performance include:
Click-through rate (CTR): the proportion of people
who see a company’s online ad and actually click on it
to reach the company’s Web site
Conversion to browse-to-buy rate: the proportion of
visitors to a site who actually make a purchase
Cost per acquisition (CPA): the cost a company
incurs to generate each purchase (or customer
registration)
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-37
Privacy
Take an inventory of the customer data collected
Develop a company policy for the information you
collect
Privacy policy
Post your company’s privacy policy prominently on
your Web site and follow it
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-38
Security
Cybercrime affects 1.5 million victims each day
Most cybercriminals target customer records
To minimize cybercrime, use tools including:
Virus detection software
Intrusion detection software
Firewall
Secure sockets layer (SSL) technology
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-39
Losses to Online Fraud
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-40
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.
13-41