MAR 6936902

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MAR 6936-902

• E-Commerce Marketing
• Fall 2002Tampa--MBA
• Customer Interface
• Rich Gonzalez
• November 7, 2002 (Week 11)

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URLs

• www.websitesthatsuck.com
• Several, see slides

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Agenda November 7, 2002

• BusinessWeek Article
• Class Exercise on DBI
• Customer Interface
• Due For November 14

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For Today November 7

• Chapter 6Customer Interface
• F2F to S2F
• How To Achieve Digital Nirvana, p28,
  BusinessWeek, November 4, 2002

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For November 14

• Chapter 7Marketing Communications Branding
• The Last Laugh, Chip Bayers, Business 2.0,
  September 2002
• www.useit.comBe ready to tell us what Jakob
  Nielsens philosophy/guidelines are.

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Digital Nirvana

• 1. Fair Use Must Be Preserved
• 2. DRM Will Never Be Perfect
• 3. Concessions Have To be Made
• Information Wants To Be Free
• Information Wants To Be Expensive

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Last Time

• Pricing
• Porter

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Porters Most Interesting Question

• Will all the values end up going to customers, or
  will companies be able to reap a share of it?

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Reasons To Disagree With Michael Porter

• Doesnt recognize the real consumer need
• Fails to realize value Metcalfs LawCritical
  mass from consumer perspective
• Doesnt adequately realize the critical mass must
  be reached to pursue pricing goals.---Temporary
  price promotions are often necessary to reach
  critical mass.
• Lower barriers to entry are not really low vis a
  vis scale
• There IS a new economy. Profits are not a right
  because innovation is continuously necessary.
• In a way, there is no such think as an
  sustainable SCA anymorethe half-life of an SCA
  has greatly been reduced
• Porter focuses too much on the Advertising model
  criticismuses as primary focus
• It is not a zero-sum game

In Class Exercise
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2 TeamsDiscuss Develop
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Marketing Strategy Digital Opportunities

• Goal Develop Potential Strategic Marketing Idea
  Digitally-Based
• What digitally-based idea can you identify that
  would give a business/industry an SCA?
• Other than music.

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Deliverable

• Report
• 1. Industry/Service/Product (Pick Only Two)
• 2. Basic Idea (Rough Description)
• 3. User Benefits
• 4. Why Might It Succeed?
• Cite idea(s) From Porter, Textbook, Discussions,
  Starbucks, etc.

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Home Security Innovation

• 1. Home Security
• 2. Use Internet to View Home or Business
  Online---Alarm phones in report
• 3. Monitor kids, pets, cable man.. Peace of mind
• Remote control of activities in home
• 4. High bandwith, low cost, people now worry
  about this technology available now

In Class Exercise
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Checkout Innovation

• 1. Automated Checkout
• 2. No checkout, just leave the retail
  storeautomatic payment
• 3. Waits eliminated, EZ payment, accuracy,
  reduces shoplifting, laziness rewarded
• 4. Impatient consumers, time demands always
  present, people dont balk, reduces store costs

In Class Exercise
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Results 3

• 1. Industry/Service/Product (Two)
• 2. Basic Idea (Rough Description)
• 3. User Benefits
• 4. Why Might It Succeed?

In Class Exercise
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Results 4

• 1. Industry/Service/Product (Two)
• 2. Basic Idea (Rough Description)
• 3. User Benefits
• 4. Why Might It Succeed?

In Class Exercise
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(No Transcript)
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Customer Interface
Technology-mediated interface
People-mediated interface
Face-to-face interaction
Screen-to-face interaction
There has to be an interface and it has to be
effective. People are pretty effective.
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3 Fundamental Business Shifts

• 1. Most transactionsB2C, B2B, C2C and G2C will
  become self-service digital transactions.
• 2. Customer service will become the primary
  value-added function in every business. Personal
  consultancy not routine services.
• 3. The pace of transactions and customer needs
  for customer service will force firms to adopt
  digital processes---for survival.

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No Frills Discounter/E-tailer

• www.overstock.com
• Kind of like outlet malls
• www.cdbaby.com

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Rich E-tailer

• www.FAOschwarz.com
• www.maxstudio.com
• www.barneys.com
• www.disney.com
• Less Commerce (Transaction), More Content

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Customer Interface 7

• Virtual Representation of Firms Value
  Proposition
• Information
• Navigation
• Is the site worth spending time at?Should I
  flee?
• i.e., Download Time
• War Developers vs. Marketers(Customers)
• Brand?

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Design Principles

• FitHow do the 7Cs support the business model?
• ReinforcementDegree of consistency between each
  of the Cs
• The idea is performance and synergy.

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Jakobs Law of Internet User Experience

• Users spend most of their time on sites other
  than on yours.

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Jakobs Nielsens Homepage Guidelines

• Generally apply also to the entire website.
• Has Several. Well Use Only 8.

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Jakobs Nielsens Homepage Guidelines

• 1. Communicating the Sites Purpose
• 2. Communicating Information About the Company
• 3.Content Writing
• 4. Navigation
• 5. Search
• 6. Graphics and Animation
• 7. Customization
• 8. Fostering Community

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7Cs Framework

• of Interface Design

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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that
webpages contain
Commerce Sites capability to enable commercial
transactions
Community The ways sites enable user-to-user
communication
Connection Degree site is linked to other sites
Customization Sites ability to self-tailor to
different users or to allow personalization
Communication The ways sites enable site-to-user
communication or two-way communication
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Dimensions of Context
The context of a site has many different forms.
The two key context dimensions are function and
aesthetics
Look and Feel Of S2F
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• www.CeoExpress.com
• www.reflect.com
• www.nordstrom.com

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Context Archetypes

Content archetypes refer to broad, generic
approaches to context design
Aesthetically Dominant
Functionally Dominant
Integrated

• High form low function
• Look-and-feel of the site is the primary emphasis
• The site is slow to load, limited in information

• Low form high function
• Focused on the display of textual information
• The visual design is limited
• Pure text no graphics, sound or animation

• Balance of form and function
• Attractive and easy-to-use interface
• The use of a clear design theme, small images and
  plenty of white space

LandsEnd.com vs. LuckyJeans.com
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Five Content Archetypes

• One-stop shop with a wide range of goods in
  multiple product categories

Superstore
Offering Dominant

• Exclusive provider of products and services
  within the specific category

Category Killer

• Focus on exceptional quality and exclusivity
  while selling single or multiple categories of
  products

Specialty Store

• Provider of information goods although physical
  products can be purchased as a complement
• Sites are generators, sources or aggregators of
  content

Information Dominant
Market Dominant

• Provider of place for transactions, where
  buyers and sellers come together to conduct
  business

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Content Archetypes Ex.

• Superstore amazon.com
• Category Killer petsmart.com
• Specialty Store Williams-Sonoma
• Information Dominant Business 2.0
• Market Dominant buy.commerx.com

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Community

• User to User Interactions
• www.ebay.com
• www.nytimes.com

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Customization

• Sites Ability To Tailor Itself Or Be Tailored By
  (Or For) Each User
• Marketing MantraKnow Your Customer(s).

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Customization

• PersonalizationThe Customer Does It
• TailoringThe Firm Does It

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Or...

• PersonalizationThe Firm Does It
• CustomizationThe Customer Does It
• ex. www.wsj.com

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Communication

• Dialogue of user and site
• AsynchronousSite to UserUser to Site
• SynchronousLive Talk/Chat--------LandsEnd

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Connection

• ConnectionsAffiliatesRevenue
  SharingMarketingComplementary ProductsCustomer
  Acquisition
• Can Be Distracting

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Commerce

• Selection
• Pricing...Shipping
• The Shopping Cart
• Approval and Payment
• Can you avoid this experience? (browsing,
  selection, approving, paying?)
• Half.com pre-orders

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For November 14

• www.useit.com
• Be ready to tell us what Jakob Nielsens
  philosophy/guidelines are.
• Pick a Site That You Can Say Something About and
  Forward To ListservWhat would Nielsen say about
  the site?

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End Here