The Mom and Pop Virtual Store

1
The Mom and Pop Virtual Store

• B2C and C2C
• INBS 510
• Module 2

2
E-tailing Business Models

• The business model
• Embodies a plan for offering a value proposition
  to customers, a source of revenues, an
  identification of costs and a detailed set of
  processes for execution.
• B2C categorized as by the ways revenues are
  generated

3
B2C Business Models

• Subscription models
• Transaction fee models
• Advertising supported models
• Sponsorship models

4
Another angle to classify B2C business models

• Types of sites
• Direct marketing sites from manufacturers such as
  Dell, Nike or Sony
• Pure play e-tailers like Amazon.com who do not
  have a physical presence
• Clicks and mortars such as Wal-Mart or Home Depot
• Also
• General purpose vs. niche e-tailing
  http//www.kimonoart.com
• Global vs regional ie. http//www.rivercitygrille.
  com
• a local restaurant

5
Understanding the Internet Consumer

• Forrester Research- Internet Economy
• Technographics- attitude toward technology
• Early adopters- first to get online and shop 30
• Mainstream- slower to adopt 47
• laggards- last to move online 22

demographics
psychographics
6
Forrester Research of Technographics

• Digital hopefuls7
• Fast forwards 12
• Gadget grabbers9
• Handshakers7
• Media junkies5
• Mouse potatoes 9
• of 204 million US adults
• Mary Modahl Now or Never- Winning the Battle
  for the Internet Consumer

• New age nurturers 8
• Sidelined citizens28
• Technostrivers7
• traditionalists8

7
Why consumers buy on-line

• Attitude toward technology
• Age
• gender
• Income
• high income optimists
• low income optimists
• high income pessimists
• low income pessimists

• Motivation to use technology
• Entertainment
• Family
• career

8
Example Starbucks vs Maxwell House

• High income optimists
• Career motivated
• Early adopters

• Low to moderate income
• Older
• mainstream

9
Getting the Early Adopters

• Fast forwards- career
• Travel
• electronics
• Cars
• Books , music video
• stocks
• New age nurturers- family
• Music video
• Clothing
• software

• entertainment
• fun
• social status
• excitement

10
Early adopters

• ie. Mouse potatoes- high income optimists for
  entertainment
• Clothing
• Music video
• Spenders- compulsive
• Style conscious

11
BUT B2C wants mainstream ½ trillion dollars

• High income pessimists
• Apathy
• Need to increase familiarity
• Improve ease
• interest

• Low income optimists
• Communities
• Discounts
• Time saving
• convenience

12
www.internetworld.com

• Sept 15th 2001
• Seven Practical Ways to become fanatical on
  behalf of your customers
• Offer customers choices
• www.carsdirect.com
• Accountability is key
• Bake it into the company culture
• www.autobytel.com
• Know your customer
• Mine customer data, know their DNA
• Value the current crop repeat business
• Human touch matters
• Measure it- quantitative methods

13
Winning the MainstreamFive Step Program

• Make it easy for customers to do business with
  you
• Focus on the end customer for your products and
  services
• Redesign you customer facing business processes
  from the end customers point of view
• Wire your company for profit design a
  comprehensive, evolving electronic business
  architecture
• Foster customer loyalty- the key to profitability

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1-Make it easy, easy easy

• Streamline interactions
• Dont waste my time
• Remember us
• Make it easy to order
• Make sure your service delights
• Customize for me

15
2-Focus on the End customer

• Interact directly
• Know your customers
• Make them feel special
• Build community
• Provide services and info

16
3- Redesign from customers point of view

• Stream line behind the scenes
• Database of customer profile info
• Hallmark.com - card services
• General Motors - security and convenience
• Prepare for ripple effect

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4- Wire for Profit

• Integration
• CRM
• Supply chain
• Know Technologies
• Smart cards
• Digital certificates
• XML
• Java

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5- Foster loyalty

• Measure customer revenue
• Measure customer costs
• Measure customer profitability
• Evaluate defection
• Finding and keeping right customers
• Big question How do you evaluate and measure?
  Any ideas? Check out http//www.busreslab.com

19
Critical Success Factors

• Target right customer
• Own the customer experience
• Streamline
• 360 degree view of customer relationship
• Let customers help themselves
• Help customers
• Deliver personalized services
• Foster community
• customer.com, Patrica Seybold

20
Targeting the Right customer

• http//www.aa.com
• http//www.national.com
• How have these targeted the correct customer?
• Use technographics to market

21
Owning the Customers Experience

• http//www.hertz.com
• http//www.amazon.com
• http//www.fedex.com
• http//www.nike.com
• Describe personalization and customization
  techniques

22
Streamlining

• http//www.babson.edu
• http//www.nsf.gov
• How have these 2 streamlined?

23
360 degree view

• http//www.wellsfargo.com
• What is their 360 degree view?

24
Customers helping themselves

• http//www.dell.com
• http//www.iprint.com
• http//www.landsend.com
• How does the customer help him/herself?

25
Helping customers do their jobs

• http//www.photodisc.com
• Describe the supports

26
Personalized service

• http//www.wsj.com
• http//www.onstar.com
• Describe the personalization

27
Foster Community

• http//www.cisco.com
• http//www.tripod.com
• Do you think community is as important as it is
  purported to be?
• How is community fostered?

28
Components for setting up Online Store

• Catalogs
• Merchandizing
• Configuration
• Shopping cart
• Purchase- http//www.icat.com
• Rent- http//www.yahoo.com
• http//www.mcart.com
• Tax
• Shipping
• Payment
• PGP- pretty good privacy encryption for credit
  card orders
• CONTINUED NEXT WEEK