Transcript Slide 1

Session 12:
Website Building Workshop
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Internet Marketing - Poitiers 2003
1
End Session 12:
Website Building Workshop
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Session 13:
Functional development
of the website
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• Information
• Transaction
• Interaction
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Stages (or Generations) of
Websites
• Stage I: Publishing sites - Information
• Stage II: Databases and Forms - Transaction
• Stage III: Personalization - Interaction
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Stage I: Information
Info Links
Pictures/Information
http://www.france98.com/french/index.html
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Stage I
What makes this a Stage
Website ?
I
Organises, Broadcasts and
Disseminates Information
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Stage II: Transaction
Databases and Forms
To find out the travel distances between the host cities:
Select your starting point
Select your destination
Bordeaux
Paris
Toulouse
Marseilles
Toulouse
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Marseille
– 404km
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Stage II
What Makes this a Stage
Website?
II
The ability to retrieve information to respond
to user requests
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Stage III: Personalization and
Interaction
If you area team WC98
member and are using a
computer other than the
one you originally joined
WC98, enter your
nickname and password
now.
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Stage III
What Makes this a Stage
Website?
III
More than ask-respond…
Anticipates
Suggests
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Usage of this information
• The website success factors will be used by you and
your team in order to:
– Design the site accordingly
– Evaluate your own site step by step
• We will use the website success factors to evaluate your
site too!
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Website Organisational Aspects
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Cost and Performance
Table 5.5
Time to
Reach
Cost per
Site
Ad
Network
Search
Engine
Special
Type
Impressions
75,772
16,670
1,887
Cost
$2,075
$1,133
$52
Impression
$0.03
$0.07
$0.03
CTR
2.70%
5.50%
9.50%
Cost per
4000
Prospect
Prospects
$1.01
About 2
weeks
$1.24
About 4.5
weeks
$0.28
About 23
weeks
One of the best uses of Web chain analysis is to
Internet Marketing - Poitiers 2003
compare
alternative
methods
of acquiring customers 14
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2003 The Results
Network >
End Session 13:
Functional development
of the website
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Session 14:
Drivers of internet success
How to evaluate your site
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End Session 14
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Session 15:
Website Promotion
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Promotion
Two ways to think about this topic:
1. Online communication
– The URL
– Search engine positioning
– Webvertising
– Affiliate marketing
– Viral marketing
– Email marketing
– Community marketing
2. Role of the website in the customer contact/communication mix
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Promotion: Comparison of
communication
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Do You Yahoo?
• For 50% of US Web users: Yes!!
• A phenomenal eCommerce success story
• Yahoo! brand extensions provide value add for users
– Yahoo! games
– Yahoo! clubs
– Yahoo! chat
– Yahoo! auctions
– Yahoo! Stores
• Yahoo! leverages its brand and ability to draw traffic to generate multiple
revenue streams
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Most Popular Web Sites
Yahoo! Leads
Most Popular Web Sites
Figure 5.1
60%
51%
50%
32%
30%
28%
27%
26%
24%
tripod.com
33%
microsoft.com
34%
lycos.com
35%
40%
excite.com
50%
20%
10%
geocities.com
go.com
msn.com
netscape.com
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aol.com
yahoo.com
0%
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Yahoo! Brand Extensions
The Success of the Yahoo! Brand
Figure 5.2
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Web Benefits to Firms
• The range of Web benefits
– Business models can be based on improvements in product or
service
– Business models can be based directly on generating revenue
• Let’s take a closer look at these broad classes of business models
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Revenue-Based Biz Models
Use the Net to Make Money
Provider Pays
•
•
•
•
•
Sponsorship
Alliances
Banner advertising
Prospect fees
Sales commissions
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Revenue-Based Biz Models
Use the Net to Make Money
Provider Pays
•
•
•
•
•
Sponsorship
Alliances
Banner advertising
Prospect fees
Sales commissions
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Customer Pays
•
•
•
•
Product sales
Pay-per-use
Subscriptions
Bundle sales
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Closed Loop Marketing
• Marketing is closed loop when specific customer responses to specific
marketing actions can be tracked
– For example: if an online ad encourages Web site registration, the
campaign is closed loop if users can be tracked from ad exposure
to the decision to register
• Closed loop marketing leads to rapid learning
– Marketers can experiment with prices, ad copy, and product
features on selected samples of consumers
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The Impact of Closed Loop Marketing
On the Internet
Nobody Knows
You’re A Dog…
•
Marketers want two results from user responses
– They want consumers to make a choice that leads to
• information
• improved customer satisfaction
• a transaction
– Marketers want to learn about visitors to their site
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Web Chains
• A Web chain is a click sequence
– Can be as short as a single click
– Can be as long as all possible choices on a Web site
• Decision points = event nodes
• Ending point = result node
• Common Web chain starting points
– Company homepage
– Search engine or portal
– Banner ads
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Web Chain of Events
Figure 5.12
BEGIN
No Notice
Rate (NNR)
E1: Views Page
with Paid Link
(1-CTR-NNR)
R2: Notices Ad but
doesn’t click = Ad
brand impact
Click-through Rate (CTR)
R1: Doesn’t Notice
Ad = $0 benefit
E2: Clicks Through
to Company Web
Site = Prospects
(1-PCR)
Offline Induced
Buyer (OIB)
E3: Views Web Site
but Doesn’t Buy
E4: Visits Web Site and Buys
(1-OIB)
R3: Offline Purchase = (Ad
brand + Web Site brand +
Offline profit)
R4: No Immediate Purchase
= (Ad brand + Web Site
brand impact)
R6: Would have bought offline
anyway = (Ad brand + Web Site
Offline
brand
+ Online profit
– Offline
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profit)
Prospect Conversion Rate (PCR)
Repeat
Buyer (RR)
E5: Loyal Customer
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Buy Rate
(OBR)
Online Only (1-OBR)
New
Customer
(1-RR)
R5: New Customer
= (Ad brand + Web
Site brand + Online
profit + Future
lifetime value)
R7: Only buy online =
30
(Ad brand + Web Site
brand + Online profit)
Virtuous Web Cycle
• Is a business system with positive feedback
• Each element in the business system feeds off another element in the
system and feeds into yet another element in the system
• If the cycle is strong enough, it can actually be a self-fulfilling
expectation
Huh?
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Virtuous Cycle for Net Growth
Let’s look at how it works
Consumer
and
Business
Internet
Access
Web Sites
and Web
Content
Popular
Fascination
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• It starts with user
fascination
• Providers see the
developing opportunity and
rush to create new brands
& services, which creates
more hype
• The buzz feeds back into
consumers’ interest and
desire to experiment with
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the new technology
A Dot Com World
• The virtuous Web cycle leads to rapid growth of
– Consumer access
– Internet usage
– Content online
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Evaluating Web Chains
• Enables marketers to evaluate a wide range of Web strategies
and tactics
• Calculate
– expected value of an impression
– expected value of a prospect
– expected value of a new customer
– expected value of a repeat buyer
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Web Chain Benefits and Probabilities
Five Main Benefits Occur in the Chain
•
•
•
•
•
Online contribution: the incremental profit from an online sale
Offline contribution: incremental profit from the sale of products through the
standard channel
Ad-brand impact: value to a visitor, who sees the ad but doesn’t click through
Web site brand impact: value of a visit to the Web site that results in benefits,
but not a sale
Lifetime customer value: future value of profits from a new customer
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Evaluating Web Chains
B e h a vio r R a t e s
I m p a c t V a lu e s
V a ria b le
Level
V a ria b le
C lic k - th ro u g h r a t e
2 .7 %
A d - b ra nd im p a c t
$ 0 .0 0
N o - no tic e ra te
70%
W e b s it e b ra nd
im p a c t
$ .0 .3 0
P ro sp e c t c o n ve r sio n
ra te
15%
O fflin e p ro f it
$ 1 5 .0 0
R e p e a t b u y ing ra t e
90%
O fflin e p ro f it
$ 2 3 .0 0
O fflin e - ind u c e d b u y
ra te
0 .0 5
N e w c u sto m e r L T V
O fflin e b u y ra t e
0 .3
0
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Level
$ 1 2 5 .0 0
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From Web Chains to Closed Loops
• There’s a strong connection between Web chains and
closed-loop marketing
• A Web chain is closed loop if
– the chain extends from the marketing offer to the
desired marketing response
– Each step is trackable
• The Internet can be used to close the loop on traditional
media advertising if unique identifiers are included with
the ad
– Dell newspaper ads contain a unique code
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Further Reading/Research
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End Session 15:
Web Site Promotion
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Session 16:
Final Course Review
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Typical career profiles
• Generalist
– eBusiness-responsible person (integration of the divisions)
– Project manager eCommerce
– Sales manager eCommerce Products
– Director/conductor of a special product group (e.g.
Smartcards)
• Specialist
– Web designer / Web master
– Web editor
– Internet Service Provider
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What did we learn?
• Course objectives and performance
expectation review
• Knowledge Review
• Project Feedback and Planning
• Course Evaluation
• Internship Opportunities
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End Session 16:
Final Course Review
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END OF COURSE
(whew, that was fast!)
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