ECommerce

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E-Commerce
Cameron Adams
Director, E-Commerce cameron_adams_at_intervistas.com

23 February 2000
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InterVISTAS Consulting Inc

• Decades of experience in senior marketing
  planning roles for airports
• Key strengths marketing, planning, market
  research, strategic services, strategic process
  re-engineering
• Develop the business strategy behind e-commerce

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What does E-Commerce mean to you?
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Traditional View of E-Commerce

• IT department
• marketing expense
• no underlying business strategy

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E-Commerce Today

• Primarily business-to-consumer
• 10 of UK households shopped online in 1999
• similar patterns emerging in France and Italy
• Tremendous wealth being created
• Priceline.com worth more than UAL, Continental,
  Northwest, and US Air combined

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Opportunities for Airports

• Revenue
• Branding
• Enhanced Customer Data

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Revenue Opportunities

• Exposure Revenues
• Leveraging traffic flows
• Retail
• Advertising
• E-Commerce is a third opportunity for exposure
  revenues

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Retail Opportunities

• Revenue
• Greater product selection
• Distribution (Clicks and bricks)

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Example Gifts of the Raven (YVR)

• Aboriginal arts crafts 100
• unique in its product offerings
• Not impulse buying
• built-in scalability to existing web site

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Example Gifts of the Raven (YVR)
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Robots A Challenge for Retail

• Automatic shopping robots are expanding
• Robots search the web for the best price.
• Branding even more important

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Branding Opportunities

• Airports automatically have the trust of the
  consumer
• Airports can give their seal of approval to sites
• Significant value created from airport-branded
  web sites

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Enhanced Customer Data

• Data is easily manipulated
• Data is collected automatically
• Data needs to be interpreted carefully

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Promoting E-Commerce Services

• Advertising
• Email marketing
• Affiliate Marketing

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Advertising

• Can be targeted
• Internet advertising is interactive
• Need a highly effective ad to stand out

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Email Marketing

• Cost-effective
• Effective
• Permission-based

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Affiliate Marketing

• Word-of-mouth becomes word-of-mouse
• Goals
• Acquire new customers
• Enable others to sell your products and services
• Payment of referral fees

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Affiliate Marketing

• Amazon.com
• 4,000 affiliates in 1996
• 10,000 affiliates in 1998
• 100,000 affiliates by end of 1998
• Over 400,000 affiliates in 2000

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Affiliate Marketing for Airports

• Who are your stakeholders?
• Government
• Tourism industry
• Suppliers
• Existing merchants

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E-Commerce is more than retail

• Integration, Integration, Integration
• Integrate e-commerce with other business processes

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Other E-Commerce Opportunities

• Benchmarking
• Performance Measurement
• Balanced Scorecard
• Quantitative financial results, spend per
  passenger
• Qualitative customer satisfaction, safety
  record
• Key Performance Indicators

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Other E-Commerce Opportunities

• Balanced Scorecard

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Other E-Commerce Opportunities

• Online procurement
• Greater efficiencies
• Cost savings

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Challenges

• Privacy
• Relationships with existing stakeholders
• sales via tenants international web site
• cargo business - are your freight partners
  keeping up with technology?

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E-CommerceOpportunity or Threat?

• Biggest threat is doing nothing
• E-commerce is not a magic solution
• Internal and external threats and opportunities

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Summary

• Dont be afraid to be aggressive
• Heavily promote your web site
• Integration, Integration, Integration

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Thank You !cameron_adams_at_intervistas.com