Lecture Ten

1
Lecture Ten

• Ian Harris
• Entrepreneurial Champion

2
The Purchase Experience

• Lecture Aim To introduce and provide the student
  with a solid grounding of The Purchase Experience
  within the Internet environment

3
Lecture Objectives

• To introduce you to the statistics which relate
  to the purchase experience. Statistics provided
  are in areas such as
• Motivations for First Online Purchase
• Category of First Online Payments
• Failed Purchase Attempts in the Last 12 Months
• Incidence of Online Purchasing Problems
• We will examine how a business could potentially
  be driving their visitors away from their
  Websites including the five most common
  off-putting eCommerce errors
• We look at ways in which a business may consider
  overhauling its online catalogue, which may
  ultimately be the answer to more sales
• We will briefly take a look at what you need to
  look for when a business is analysing its own
  online store
• We will consider a businesses medium and usage
  situation I.e. selling online is not the same as
  a physical store made of bricks and mortar
• We will look at ways in which a business may make
  its Website sell more effectively
• We will consider ways in which a business can
  support its online catalogue
• Finally, we will consider what retailers should
  do to be successful online

4
Content

• Introduction to the Statistics
• Are You Driving Your Visitors Away?
• The Five Most Common Off-Putting eCommerce Errors
• Overhauling your online catalogue may be the
  answer to more sales?
• Analyse Your Store
• Consider your Medium and Usage Situation
• Make Your Site Sell
• Support your Catalogue
• What Retailers Should Do

5
Introduction to the Statistics

• The next few slides introduce the concept of
  purchase experience through the medium of
  statistics with the following being presented
• Motivations for First Online Purchase
• Category of First Online Payments
• Influence of First Purchase Satisfaction
• First Online Purchase Intent (Top Five
  Categories)
• Opportunities to Stimulate Online Purchasing
• Motivations for Purchasing Online
• Barriers to Purchasing Online for Non-Purchasers
• Purchase Process Speed Expectations
• Attribute Importance vs. Satisfaction
• Failed Purchase Attempts in the Last 12 Months
• Incidence of Online Purchasing Problems
• Impact of Failed Purchase Attempts on Future
  Purchase Behaviour
• The Increased Incidence of Purchase Problems
  1999-2000
• Failures are Blamed on the Site and Not the
  Channel
• Satisfaction and its Relation to Loyalty /
  Advocacy
• Top 10 Features of Winning Online Retail Sites

6
Motivations for First Online Purchase
Source Boston Consulting Group, pp 15, March 2000
7
Category of First Online Payments
Source Boston Consulting Group, pp 16, March 2000
8
Influence of First Purchase Satisfaction
Source Boston Consulting Group, pp 16, March 2000
9
First Online Purchase Intent (Top Five Categories)
Source Boston Consulting Group, pp 17, March 2000
10
Opportunities to Stimulate Online Purchasing
Source Boston Consulting Group, pp 17, March 2000
11
Motivations for Purchasing Online
Source Boston Consulting Group, pp 19, March 2000
12
Barriers to Purchasing Online for Non-Purchasers
Source Boston Consulting Group, pp 19, March 2000
13
Purchase Process Speed Expectations
Source Boston Consulting Group, pp 20, March 2000
14
Attribute Importance vs. Satisfaction
Source Boston Consulting Group, pp 20, March 2000
15
Failed Purchase Attempts in the Last 12 Months
Source Boston Consulting Group, pp 21, March 2000
16
A Definition of A Failed Purchase Attempt

• A failed purchase is defined to occur when a
  consumer goes on the Internet with the intent to
  order or purchase online, but is unable to find
  the product he wanted, is unable to complete the
  transaction, or the transaction is not completed
  to his satisfaction

Source Boston Consulting Group, pp 21, March 2000
17
Incidence of Online Purchasing Problems
Source Boston Consulting Group, pp 21, March 2000
18
Impact of Failed Purchase Attempts on Future
Purchase Behaviour
Source Boston Consulting Group, pp 22, March 2000
19
The Increased Incidence of Purchase Problems
1999-2000
Source Boston Consulting Group, pp 20, Feb 2001
20
Failures are Blamed on the Site and Not the
Channel
Source Boston Consulting Group, pp 21, Feb 2001
21
Satisfaction and its Relation to Loyalty /
Advocacy
Source Boston Consulting Group, pp 16, Feb 2001
22
Top 10 Features of Winning Online Retail Sites
Source Boston Consulting Group, pp 8, Feb 2001
23
Are You Driving Your Visitors Away?

• Are abandoned shopping carts continuing to wreak
  havoc on your online sales? If so, perhaps it's
  your Web site that's driving your visitors away
• Marcia Yudkin, Internet marketing expert and the
  author of Poor Richard's Web Site Marketing
  Makeover, knows what makes or breaks an
  e-commerce Web site
• Having recently judged a raftload of sites for
  the Webby Awards and the Inc. Web Awards, her
  first hand knowledge of e-commerce blunders and
  how to avoid them can help you convert more
  visitors into buyers
• If you want to be a successful online retailer,
  Yudkin suggests you avoid these five common
  irritants and obstacles
• Lack of quick orientation for first-time visitors
• Explanations that don't explain
• Missing prices and shipping charges
• Unreadable text
• Inconsistencies

Source http//www.about.com/
24
Are You Driving Your Visitors Away?

• The Five Most Common Off-Putting eCommerce Errors
• Lack of quick orientation for first-time
  visitorsWhat does the site sell? "I've had to
  poke around for several minutes sometimes to
  understand the focus of a site," Yudkin says.
  "Jargon is one culprit. Another is lack of
  context, like an airline site that sells tickets
  not giving a single clue on the home page in what
  countries or even what continent it flies
• Explanations that don't explain What does the
  product do and not do? "Another basic, but it
  happens often that a site doesn't explain whether
  their "Turbocharge VT27-Plus" is a one-time
  download, a subscription, a Web-based service or
  something else," notes Yudkin. "An alternative
  payment system's site failed to offer a clear,
  systematic description of how it works"
• Missing prices and shipping charges How much?
  "You shouldn't have to put something into a
  shopping cart or enter your credit card
  information to learn how much an item costs,
  including shipping," says Yudkin. "Unfortunately,
  you still find this mistake at sites that have
  had plenty of time to get their act together"

Source http//www.about.com/
25
Are You Driving Your Visitors Away?

• The Five Most Common Off-Putting eCommerce Errors
• Unreadable text Say what? "Creativity gone
  haywire seems to be the hallmark of some Web
  designers," Yudkin charges. "Orange letters on a
  blue background, olive green on black, light gray
  on white and blue on blue were combinations that
  sent me packing, as did lettering too small for
  over-40 eyes."
• Inconsistencies Huh? One site says, "To sign up,
  click on the Sign Up link at the top of every
  page." But the site does not have any "Sign Up"
  link, only "Sign In." "Such carelessness wastes
  the time of earnest shoppers and gets them
  frustrated and fed up, never to return," Yudkin
  comments

Source http//www.about.com/
26
Overhauling your online catalogue may be the
answer to more sales?

• Ok. Youve built your site. Found a good host.
  Promoted your URL and submitted to search
  engines. You constantly trawl resources like
  SitePoint for the latest ways to boost traffic,
  generate loyalty, and build a community
• But sales are still slow. Why? Your catalogue
  could be letting you down
• Whether it displays only branded merchandise as a
  side-issue to the main purpose of your site, or
  its the core of your business as an online
  store, your electronic catalogue is critical to
  your sales
• It sounds obvious, but few people actually put
  any planning into their online catalogue
• Perhaps theyve bought an off-the-shelf ecommerce
  solution, and think that all they need to do is
  simply follow the product instructions
• Or maybe theyve left the maintenance of their
  catalogue to their Webmaster
• Either way, a half-hearted approach to your
  online catalogue will result in sub-standard sales

Source http//www.sitepoint.com/
27
Analyse Your Store

• Take a look at your site stats and identify just
  how many shoppers you lose at the point of
  purchase. Users may click away from your online
  store for a number of reasons. For instance
• They dont think your product meets their needs
• They cant find a product they want
• They lose interest and decide to look elsewhere
• They dont like the look of what they see in your
  catalogue
• They think they can get a better deal elsewhere
• They dont trust the security of their personal
  details on your site
• Each of these failures can be easily fixed if you
  simply take the time to identify where your site
  lets you down

Source http//www.sitepoint.com/
28
Consider your Medium and Usage Situation

• Because the online store is a metaphor borrowed
  in totality from real life, we tend to think very
  literally about our electronic shop fronts and
  their associated collateral. However, shopping
  online is not just like shopping in a
  bricks-and-mortar store. Why not?
• Shoppers cant experience your product as easily
• Shoppers make decisions based on images in your
  catalogue
• Shoppers dont usually have access to instant,
  face-to-face assistance in an eStore
• While online shopping allotted more of the users
  time than are some other online tasks, speed is
  still of the essence

Source http//www.sitepoint.com/
29
Consider your Medium and Usage Situation

• Shoppers cant experience your product as easily
• If you sell music or books, then you are lucky.
  If its clothes or bicycles or a giant inflatable
  Tyrannosaurus Rex, product experience will be a
  challenge for your customers
• Shoppers make decisions based on images in your
  catalogue
• They are not standing in a store surveying
  shelves of goods from which to choose. The online
  search process can take a long time, particularly
  when it comes to choosing between products on
  different sites
• Shoppers dont usually have access to instant,
  face-to-face assistance in an eStore
• Sure you may have to wait for help in your local
  shopping centre, but once you have got the full
  attention of the sales assistant, you are very
  unlikely to let them go until you have all the
  information you require

Source http//www.sitepoint.com/
30
Consider your Medium and Usage Situation

• While online shopping allotted more of the users
  time than are some other online tasks, speed is
  still of the essence
• A user might sit down with a cup of tea to look
  through your physical catalogue, but they face
  different pressure in the online environment
• So your shoppers will want - Speed. Brevity.
  Information. Security and Ease of Use

Source http//www.sitepoint.com/
31
Make Your Site Sell

• A number of gurus suggest techniques to improve
  the sales success of your online catalogue
• Logical Organisation
• Use of Graphics
• Product Descriptions
• Search Facilities
• Logical Organisation
• A well-presented contents page that lists your
  categories in an easy-to-understand, navigable
  manner will give your users a good starting
  point. Consider http//www.sony.com/. Here, menu
  item rollovers provide a sub-menu for extra
  information, in case youre not sure which top
  level menu item to select

Source http//www.sitepoint.com/
32
Make Your Site Sell

• Use of Graphics
• Use high-quality, fast-loading thumbnails which,
  when the user clicks on them, appear in a more
  detailed popup window. This puts control over the
  purchase experience back into the users hands
  they're not forced to wait for long downloads of
  pages heavy with graphics
• Also, try to include images alongside (not
  amongst) text. And remember that the inclusion of
  extra items to make your picture more attractive
  not only wastes precious download speed and page
  space on superfluous graphics, but also means
  that you run the risk of confusing users.
  Australias http//www.greengrocer.com.au/
  exemplifies these guidelines to the letter

Source http//www.sitepoint.com/
33
Make Your Site Sell

• Product Descriptions
• Avoid forcing readers to scroll or click through
  extra pages in order to get essential product
  information. You want them to be able to
  understand all they need to know at a glance.
  http//www.petsmart.com/ is a great example. Not
  only are product descriptions punchy and written
  with personality, but theyre descriptive, and
  the user has the option to access more detailed
  information on each product type if they need it
• Search Facilities
• A decent search facility is essential to any
  online store. Allow your users to search by any
  parameter they could conceivably imagine and
  let them to click through easily from the results
  listing to view information on each product.
  Theres a good search facility at
  http//www.landsend.com/. If your search returns
  a huge number of results, the search page will
  display only a couple from each category,
  offering users the option to click through in
  order to view all the results returned from a
  particular category

Source http//www.sitepoint.com/
34
Support your Catalogue

• There's a literally unlimited range of other
  techniques that you can employ to complement your
  efforts in your online catalogue
• Offer samples and guarantees
• Cater to different information needs
• Facilitate return visits
• Make it easy for shoppers to contact you
• Use the appropriate language
• Offer samples and guarantees
• Its old news, but surprisingly few sites do it.
  If you cant offer a sample of the product
  (either online, as a download, or through the
  mail), make sure your guarantee is reasonable,
  and that you stand by it. Shoppers need
  reassurance that theyre not going to get
  something they dont want
• http//www.landsend.com allows users to view
  items of clothing assembled on a model handy if
  your shoppers are putting together outfits, or
  want to see what a new garment will look like
  with an item they already have

Source http//www.sitepoint.com/
35
Support your Catalogue

• Cater to different information needs
• While shoppers may be united in certain aspects
  (e.g. they all want to be able to assess your
  offering quickly and easily) its true that you
  wont know what particular aspect of a product or
  service they really care about
• For instance, if you sell whitegoods, one shopper
  might be most interested in a refrigerators
  size, temperature settings, and bonus features
  (like that handy automatic ice crusher!), while
  another might be more concerned with warranties,
  whether you carry out repairs and maintenance,
  and your delivery areas. The solution? If you
  cant fit everything you need to one that first
  page of product content, provide more detailed
  information in an optional format, such as a
  printable fact sheet, popup or alternate page

Source http//www.sitepoint.com/
36
Support your Catalogue

• Facilitate return visits
• Often, users buy on subsequent visits to your
  site, not on their first. So you need to make it
  easy for them to come back
• Allow users to bookmark individual product
  information pages
• Allow visitors to email themselves (or friends)
  information on products, and print information
  directly from your site with ease
• Provide them with the opportunity to store
  favourites etc. in your system for future access
• Make it easy for shoppers to contact you
• While we cant all afford a full customer service
  staff to man phones and participate in online
  chat, the provision of a quick, easy channel for
  customers to communicate with your business can
  mean the difference between making or losing a
  customer
• Use the appropriate language
• That is, use language that suits your users, your
  brand personality, and the look and feel of your
  site. Avoid all those marketing clichés and
  terminology that will baffle, intimidate, or
  confuse
• Remember your online catalogue is the point at
  which all your targeting and promotional efforts
  will succeed or fail. Its worth the effort to
  get it right

Source http//www.sitepoint.com/
37
What Retailers Should Do

• By making sure your site isn't creating any of
  these obstacles, retailers can reduce shopping
  cart abandonment and create happier, more
  satisfied customers
• "Blunders are equally rampant at well-funded
  corporate sites and those from home-based
  businesses," notes Yudkin. "The good news is that
  many of the errors are extremely easy and
  inexpensive to fix."

Source http//www.about.com/
38
What Retailers Should Do

• Yudkin also offers tips for small retailers who
  want to makeover their Web sites to stand out
  from their competitors. These inexpensive ideas
  can make a big difference in your online success
  and help drive business to your physical store
• Take advantage of your Mom Pop status, if you
  fall into that category, and make the site
  reflect your personality and your geographical
  location
• Add community-oriented, local features that the
  national retailers wouldn't be able to compete
  with
• Be responsive and personal to people who email
  you - something the big sites usually can't
  manage well
• Include your phone number and a map to get to
  your store. Some people finding your Web site
  won't be familiar with your city or town
• State your store hours and make sure they're up
  to date. You'll make people angry if they show up
  when your Web site said you'd be open and you're
  not

Source http//www.about.com/
39
Summary of Learning Outcomes

• You were introduced to statistics relating to the
  purchase experience, which would have helped to
  point out potential problems and pitfalls to
  avoid
• We examined how a business could potentially be
  driving their visitors away from their Websites
  including the five most common off-putting
  eCommerce errors, which you should now know how
  to avoid
• We looked at ways in which a business may
  consider overhauling its online catalogue, which
  may ultimately help it to more sales
• We will briefly looked at what you may need to
  look for when a business is analysing its own
  online store. The points here should help you
  realise the pitfalls
• We also considered a businesses medium and usage
  situation I.e. selling online is not the same as
  a physical store made of bricks and mortar
• We looked at ways in which a business may make
  its Website sell more effectively
• We looked at ways in which a business can support
  its online catalogue and what can be done to
  improve this facility
• Finally, we considered what retailers should do
  to be successful online

40
Assessment Question

• With the information and references provided in
  this lecture and encompassing further research
  please answer one of the following
• A. If you have yourself purchased from a Website.
  Please explain in your own words what you
  particularly liked and did not like about the
  experience. Also, explain what you felt were the
  advantages and disadvantages of shopping online
  compared with a physical shopping experience?
• B. If you have never purchased online then please
  select 3 Websites with shopping facilities and
  compare and contrast their individual purchasing
  facilities (you can do most of this without
  actually purchasing anything)

41
References and Useful URLs

• Boston Consulting Group, March 2000, pp 15-22
• http//www.about.com/
• http//www.greengrocer.com.au/
• http//www.landsend.com/
• http//www.petsmart.com/
• http//www.sitepoint.com/
• http//www.sony.com/

42
Glossary of Terms

• Please refer to the following references to help
  you understand
• IT terms used throughout all of the lectures
• http//www.marketingterms.com/ (Internet
  Marketing Dictionary and Acronyms)
• http//www.xetg.com/articles/search_engine_secrets
  /glossary.shtml (Xtreme eMarketing Techniques and
• Guide)
• http//www.activemarketingtips.com/amthome/dict.ht
  m (Essential Tips for Marketing Success)
• http//www.atwebo.com/glossary.htm (_at_WEBO
  eMarketing Glossary)
• http//www.matisse.net/files/glossary.html
  (General IT Glossary of Terms)
• http//www.animatedsoftware.com/statglos/statglos.
  htm (Internet Glossary of Statistical Terms)
• http//www.weihenstephan.de/schlind/genglos.html
  (A Hypermedia Glossary of Genetic Terms)
• http//www.webopedia.com/ (The only online
  dictionary and search engine you need for
  computer and
• Internet technology)
• http//www.grantasticdesigns.com/glossary.html
  (Glossary of Graphic Design and Web Page Design
• Terms)
• http//www.walthowe.com/glossary/ (Glossary of
  Internet Terms)
• http//www.wwli.com/translation/netglos/glossary/g
  lossary.html (Internet Terms)
• http//www.sharpened.net/glossary/index.php
  (Glossary of Computer and Internet Terms).
• http//www.lib.berkeley.edu/TeachingLib/Guides/Int
  ernet/Glossary.html (Glossary of Internet and Web