Session 4 Topics

1
Session 4 Topics

• Midterm Exam Preview
• Project Info
• Ecommerce Considerations for Customer Order
  Management
• User Interface Design Guidelines

2
Customer Order Management Cycle

• Post-Sales Interaction
• Order billing and account/payment management.
• Customer service and support.

• Presales Interaction
• Consumer inquiry and order planning generation.
• Cost estimation and pricing of product services.
• Product Service Production and Delivery
• Order entry and receipt.
• Order selection and prioritization.
• Order scheduling.
• Order fulfillment and delivery.

3
Customer Order Management Process Overview

• The basic Customer Order Management (COM) process
  includes the following sub-processes
• Order Entry and Receipt .
• Delivery.
• Invoicing.
• Payments.

4
Order Management Process

5
Order Entry Starts the Flow

• The order transactions form a chain of related
  processes and business documents.
• The entire chain of processes and documents
  creates a transaction work flow.

6
Post Order Entry - Delivery
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Delivery Overview

• Within the delivery process the following steps
  are executed either automatically or manually.

8
Customer Payment

• The final step of the Customer Order Management
  cycle.
• The Customer Payment step includes
• Posting payments against invoices
• Reconciling differences, if necessary
• The processing of the customer payment is done in
  accounts receivable against open items.

9
Retail Ecommerce Technical Architecture Overview
10

Retail Ecommerce - Process Technology Overview
11
Front-end Order Processing Essential Components

• Necessary ecommerce order processing components.
• The availability of a virtual shopping cart.
• An ability to transfer data securely using SSL
  or SET.
• 85 of all online transactions use credit cards.
• Taking money over the internet is a two-fold
  process (you'll need two things)
• A Merchant Account.
• A Payment Gateway (CyberCash/Verifone).

12
Shopping Models

• Two main shopper models
• Anonymous - new ID every visit
• Registered - shopper logs on to store
• Cookie can be used to get/retain shopper ID
• Shopper can log on when making purchase to get ID
• Shopper has the option to be anonymous.
• Shopper ID can be customized.
• Unique per store.
• Shared ID between stores (for a virtual shopping
  mall).

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Shopping Cart Paradigm

• Convenient model for shopper
• Uses table defined by the merchant to store
  basket items
• Shopping basket information is stored on the
  database server and can be persistent.

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Shopping Cart Technology

• Shopping Cart
• An order-processing technology allowing customers
  to accumulate lists of items they wish to buy as
  they continue to shop.
• Shopping cart is supported by
• Product catalog.
• Merchant server.
• Database technology.
• Combine a number of purchasing methods to give
  customers a wide array of options.

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Shopper ID/Cookie Support

• Special shopper IDs.
• Unknown Shopper - system automatically generates
  one.
• Administrator.
• The ID is part of the URL while navigating the
  store.
• Shopper ID optionally stored in cookie if browser
  supports it.
• Information may be used to customize subsequent
  visits.
• Used as primary key in database.

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Alternative Online Shopping Solutions

• Turnkey solution
• A pre-packaged e-business
• E-business templates
• Outline the basic structure, but allow the design
  to be determined by the owner
• Project outsourcing
• Available to businesses with substantial funding,
  alleviates the need for businesses to complete
  projects in-house
• Front-end system
• Portion of an e-business that is visible to
  consumers
• Back-end system
• Database management, payment processing and
  logistics

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Reprise What are Mercantile Processes?

• Mercantile processes define interaction models
  between consumers and merchants.
• Mercantile processes can be developed from two
  perspectives consumer and retailer.
• Consumer perspective - the process needs to meet
  the expectations of the on-line shopper.
• Quality.
• Convenience.
• Value.
• Price
• Privacy.
• Retailers perspective - the process defines the
  COM cycle specifying activities that must take
  place to fulfill customer orders.

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Consumer-Oriented Mercantile Models

Product/service search discovery
Comparison shopping Product selection (based on
various attributes)
Negotiation of terms e.g., price, delivery times
Placement of order
Authorization of payment
Receipt of product
Customer Service Support (If not satisfied in X
days, return product)
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Multifaceted Mercantile Model
I T ERACT

• Special areas encourage customer to register
  (i.e. selection of articles customized for
  visitors interests).

• Communities of interest.
• Features that encourage customers to explore.
• Changing topics for repeat customers.

ATTRACT
ACT
REACT

• Free download (video, audio, software).
• Shopping.
• Chat and News.
• Subscription.

• Other products of interest to customer.
• Other sites of interest to customer.

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Mercantile Solution Components
I N T E R A C T

• Membership
• Search engine
• Profiler/Agents
• Customer tracking
• Publishing

• Interactive
• Customization
• Plug-ins
• ActiveX, Java

ACT
ATTRACT
REACT

• Shopping
• Payments
• Subscription
• News, Mail, and Chat

• Ad Server
• Ad Rotation
• Ad Tracking
• Customer interests
• Customer Service

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Web Metrics - Measures of Success
I N T E R A C T

• HITS

• LEADS

ATTRACT
ACT
REACT

• AD REVENUE
• CUSTOMER
• SATISFACTION
• RETENTION

• SALESREVENUE

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Policy Decisions Influencing Web Site Design

• Credit checking criteria.
• When how?
• Order priority policies.
• Potential advantages risks.
• Order batching.
• Pros/cons.
• Shipment consolidation.
• Pros/cons.

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Other Ecommerce Management Considerations

• Available Product/Content
• Buying Process.
• Pricing issues
• Methods of Payment.
• Market Penetration Promotion.
• UI Effectiveness

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User Interface Design Guidelines
25
Importance of Usability

• E-Commerce Web site Virtual storefront
• Web site UI represents Virtual store clerk.
• Online shoppers cannot afford to be less tolerant
  of inept virtual clerk.
• E-Commerce Web site electronic catalog for
  direct sales
• Catalogs are convenient for mail-ordering and
  large inventory.
• Web site user interface read-ability/usefulness
  of catalog.

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Usability ROI Myths and Fallacies

• Analog comparisons are not required
• Cost of bad Web design Loss of approximately
  50 of potential sales from the site as people
  cant find stuff (Jakob Nielsen, Alert Box,
  1998, cited by Forrester)
• Executives will believe voodoo economics
• There are one billion users on the Internet, and
  half of them could come to your site. If the
  average cost of an abandoned shopping cart is
  20, then you will lose 10 billion a year in
  sales of your designer pet food (Rosenburg,
  2003, parody of J. Nielsen)

(Daniel Rosenberg, Oracle)
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Conversion Rates

• A conversion rate is loosely defined as the
  percentage of Web site visitors who complete a
  desired action.
• This action can take many forms
• Clicks beyond home page.
• Purchases.
• Membership registrations.
• Newsletter subscriptions.
• Sample downloads.
• Sales inquiries, etc.

(Using Conversion Rates to Measure Web Site
Effectiveness and Improve ROI http//www.websitep
rofitdoctor.com/MC_BP_articles.asp?article03_11_0
3_01.txt)
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Conversion Rates (cont)

• A high conversion rate depends on several factors
• The interest level of the visitor
• The attractiveness of the offer
• The ease of the process
• The interest level of the visitor is maximized by
  matching the right visitor, the right place, and
  the right time

(The 1 Internet Marketing Metric http//www.mar
ketingterms.com/dictionary/conversion_rate)
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Conversion Rates (cont)

• average conversion rates are in the 3 to 5
  range below 2 is considered poor and 10 and
  above is awesome.

(http//news.com.com/2010-1071-281288.html)
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Conversion Rates Influenced By Many Factors
Target Inappropriate Audience
100
Slow Page Load
Unclear Marketing Message
Clumsy Site Navigation
Unengaging Look Feel
Inadequate Selection
Percent of Site Visitors
Ineffective Presentation
Uncompetitive Price
No Access to Real-Time Help
Long Delivery Times
Credit Card Validation Error
Ineffective Tools to Assist Selection
Order Conversion Rate 1.9
Excessive Shipping Costs
Customer Acquisition
First Impression
Merchandising and Selection
Checkout Process
Source The Boston Consulting Group
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Conversion Rates Influenced By Many Factors

• Target inappropriate audience (marketing and UCD)
• Unclear marketing message (marketing)
• Slow page load (usability)
• Un-engaging look and feel (usability)
• Clumsy site navigation (usability)
• Ineffective presentation (usability)
• Inadequate selection (usability)
• No access to real time help (usability)
• Uncompetitive price
• Ineffective tools to assist selection (usability)

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Conversion Rates Elements That Most Affect Them

• User Interface
• Convenience
• Performance
• Effective advertising
• Word of Mouth

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Ten Most Violated Homepage Design Guidelines

• Emphasize what your site offers that's of value
  to users and how your services differ from those
  of key competitors
• Use a liquid layout that lets users adjust the
  homepage size
• Use color to distinguish visited and unvisited
  links
• Use graphics to show real content, not just to
  decorate your homepage
• Include a tag line that explicitly summarizes
  what the site or company does
• Make it easy to access anything recently featured
  on your homepage
• Include a short site description in the window
  title
• Don't use a heading to label the search area
  instead use a "Search" button
• With stock quotes, give the percentage of change,
  not just the points gained lost
• Don't include an active link to the homepage on
  the homepage

(Jakob Nielsen's Alertbox, November 10, 2003)
34
Primary UI Guideline for Ecommerce Web - Center
on the User Experience

• UI Design should focus on
• User experience familiar needs and mental
  models.
• User expectations.
• User ease and comfort.
• User-centered design templates can help
• Simplicity.
• User control.
• Consistent navigation.
• Search.
• Shopping carts.
• Personalization.

35
User versus System Interface

• System interfaces I/O and integration requiring
  minimal human interaction.
• User interfaces
• I/O requiring human interaction.
• User interface is everything end user comes into
  contact with while using the system.
• To the user, the interface is the system.
• Analysts typically design system interfaces
  separate from user interfaces.
• Each type of interface requires different
  expertise and technology.

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Understanding the User Interface

• Physical Aspects of the User Interface
• Devices touched by user, manuals, documentation,
  and forms.
• Perceptual Aspects of the User Interface
• Everything else user sees, hears, or touches such
  as screen objects, menus, and buttons
• Conceptual Aspects of the User Interface.
• What user knows about system and logical function
  of system.

37
User Interface Design Guiding Principles

• User-centered design
• give users/customers control through
• clear navigation aids.
• no dead-end pages.
• direct access to info.
• Navigational Ease
• Visibility
• All controls should be visible.
• Provide immediate feedback to indicate control is
  responding.
• Affordance
• Appearance of control should suggest its
  functionality purpose for which the site is
  used.
• Standardization
• System developers should use published interface
  design standards and guidelines.

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Highlights on User-Centered Design

• User Empathy
• Focus early on the users and their work by
  focusing on requirements
• Usability
• Design system that is easy to learn and use.
• Aggressive Prototyping
• Iterative development keeps focus on user.
• Continual return to user requirements and
  evaluate system after each iteration.
• Human-computer interaction (HCI)
• Study of end users and interaction with
  computers.
• Human factors engineering (ergonomics)

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Metaphors for Human-Computer Interaction

• Direct manipulation metaphor
• User interacts with objects on display screen.
• Document metaphor
• Computer is involved with browsing and entering
  data on electronic documents.
• WWW, hypertext, and hypermedia.
• Dialog metaphor
• Much like carrying on a conversation.

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Factors in Human Computer Interaction
Organizational job design, roles, policies,
Environmental noise, heating, lighting,
ventilation,
Health stress, headaches
The user motivation, satisfaction, experience
Comfort seating
User interface I/O devices, color scheme,
icons, dialogue, help
Task complexity, novelty, allocation,
repetitions, monitoring
Constraints costs, timescales, staff,
equipment, building
System functionality hardware, software, network
Productivity output, quality, costs, errors,
production time
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Key Elements of Effective Interface Design

• Make site freestanding
• who, what, when and where.
• Every page needs
• An informative title.
• Creators identity (author or institution).
• Creation or revision date.
• Link to a local home page.
• Home page URL on major menu pages.

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Ten web interface design guidelines (1 of 2)

• From Brinck, Gergle, Wood 2001
• Functionality should serve the users needs.
• Minimize page size for faster download.
• Make organization clear.
• Design the site with structure of real tasks.
• Design for simplicity, consistency, and focus.
• Design for a range of users and computers.
• Present information in a simple way.
• Make similar things similar, different things
  different.
• If errors occur, allow user to easily fix them
  and resume task.
• Respect users security, privacy, and time.

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Applying the guidelines

• Use a task-oriented organization.
• Organize around tasks, not items.
• Make navigational organization and context clear.
• Where am I?
• How do I go somewhere else?
• Chunk information for easy scanning.
• Use lists, active voice, terms users know.
• Use standard, symmetrical layouts.
• Align left, use the same font face.
• Keep important content above the fold.
• Some users may not scroll.
• Use tables for tabular data.
• Try an ordered list instead.

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Adding Spice through Active Tools

• Bring web pages to life - but skills to use them
  varies considerably.
• Options include
• Animated GIFs
• Multiple images shown in sequence (cartoon).
• Use shareware GIF Construction Set or GIFBuilder.
• Java
• machine independent object-oriented language.
• Applets.
• ActiveX Microsoft.
• Flash, Director (Shockwave) Macromedia.

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Usability resources

• Brinck, T., Gergle,D., and Wood, S. Usability for
  the web Designing web sites that work. Morgan
  Kaufmann, San Francisco, 2001.
• Nielsen, J. Designing Web Usability. New Riders
  Publishing, Indianapolis, Indiana, 2001.
• Norman, D. The design of everyday things.
  Doubleday, New York, 1990.
• World Wide Web Consortium. Techniques for Web
  Content Accessibility Guidelines.
  http//www.w3.org/TR/WCAG10-TECHS/ Accessed
  January 22, 2005.

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Next Session Highlights

• Review reading assignments
• T S Ch 6, 8, 9
• Powell Ch 3
• Midterm
• Web Site Analysis Due