B2C = 10% B2B = 90% The Business Side Benefits Vs. Challenges the Market Needs of the Consumer Continuous Research Benefits to B2C Reduce intermediaries reduce labor costs Shorter transaction times Improved customer service Expanded Market Challenges Personalized service Strong brands the Competitive Edge Quick to Evolve Solutions to offline compromises.
B2C = 10% B2B = 90% The Business Side Benefits Vs. Challenges the Market Needs of the Consumer Continuous Research Benefits to B2C Reduce intermediaries reduce labor costs Shorter transaction times Improved customer service Expanded Market Challenges Personalized service Strong brands the Competitive Edge Quick to Evolve Solutions to offline compromises.
B2C = 10% B2B = 90% The Business Side Benefits Vs. Challenges the Market Needs of the Consumer Continuous Research Benefits to B2C Reduce intermediaries reduce labor costs Shorter transaction times Improved customer service Expanded Market Challenges Personalized service Strong brands the Competitive Edge Quick to Evolve Solutions to offline compromises.
Spring 2003 Business-to-Consumer Defined The Business Side The Customer The Business/Customer Relationship B2C and the Real World Exercise Summary Reading List
What is Business-to-Consumer? B2C E-commerce E-business
E-tailing B2C = 10% B2B = 90% The Business Side Benefits Vs. Challenges The Market Needs of the Consumer Continuous Research
Benefits to B2C Reduce Intermediaries Reduce Labor Costs Shorter Transaction Times Improved Customer Service Expanded Market
Challenges Costly Organization Wide Commitment Continuous Change New Intermediaries Scaleable & Flexible Supply Chain New Age Intermediaries Customer Portal Aggregator e-Retailer Infomediaries The Competitive Edge Quick to Evolve Solutions to Offline Compromises Personalized Service Strong Brands
The B2C Customer
Empowered by Technology
Consumer Concerns Privacy Security
Consumer Frustrations Lengthy Web Forms Complicated Sites Minimal Assistance Undisclosed Expenses Building the Business/Consumer Relationship Unique Service for the Consumer Trust
The Strategy Converting Visitors to Buyers CRM Web Assurance Services
B2C The Real World Nexchange solving the abandoned shopping cart case Lands End an e-commerce pioneer Nexchange and The Abandoned Shopping Cart Case Average abandonment rate = 2/3
Attacking the Problem Decrease Abandonment
Increase Sales
Lands End Leadership in B2C Whats best for the customer is best for Lands End Personalized shopping accounts Virtual Model Easy Returns
www.landsend.com
The 8 Best Practices Bill Demas, VP of Marketing Vividence, San Mateo, Calif. 1. Disclose all costs 2. Show users whats in their carts 3. Allow customers to change orders 4. Save cart contents for return visits
8 Best Practices Continued . . . 5. Easy use of special promotions 6. Beef up customer service 7. Encourage shipping to multiple destinations 8. Short forms The Customer -
The Key to Success
Reading List Customer Relationship Management and E-business: More Than a Software Solution, Review of Business; Jamaica; Winter 2003; Edna Johnson Ragins; Alan J Greco; vol. 24, issue 1, pp. 25-30 Web Assurance Services: What Internal Auditors Need to Know, Internal Auditing; Boston; Nov/Dec 2002; Conni Lehmann; R Steve McDuffie; Bruce Runyan; L Murphy Smith; vol 17, issue 6, pp. 17-23 Failure to Assure Security Seen Behind Slow Growth of Online Shopping; BusinessWorld; Manila; Jul 2, 2002; Elanore C Sanchez, p. 1 B-to-C Advertisers Learn Online Tricks From Biz Colleagues; Marketing News; Chicago; Jun 24, 2002; Deborah L Vence; vol 36, issue 13, p. 4 How Online Retailers Can Attract Customers; Business Times; Kuala Lumpar, Mar 10, 2000; Jennifer Jacobs, p 5 E-tailing Survival Guide; eCompany Now; Dec. 2000; Stacy Perman Operations Management 4 th Edition; Roberta S. Rusell, Bernard W. Taylor III Lands End: IBM technology a perfect fit for its B2B solution; an IDC e-business case study; www.3.ibm.com