CHAPTER 7 Developing the Website OHT 7.1

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CHAPTER 7
Developing the Website
OHT 7.1
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Learning objectives
• Describe the different stages involved in
creating a new site or relaunching an existing
site;
• describe the design elements that contribute
to effective web site content;
• define the factors that are combined to deliver
a quality online service.
OHT 7.2
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Questions for marketers
• Which activities are involved in building a new site or
updating an existing site?
• What are the key factors of online service quality and
site design that will encourage repeat visitors?
• Which techniques can I use to determine visitors'
requirements?
• Which forms of buyer behaviour do users exhibit
online?
• What are accepted standards of site design needed
for consistency?
OHT 7.3
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Web site development process
Figure: Summary of process of web site development
OHT 7.4
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Online elements of service quality
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Companies need to:
– Understand customers’ expectations
– Make clear service promises
– Deliver on those promises
Tangibles
Reliability
Responsiveness
Assurance and
empathy
•Ease of use
•Service quality
•Content quality
•Price
•Availability
•Bugs
•E-mail replies
•Download speed
•E-mail response
•Callback
•Fulfilment
•Contacts with call
centre
•Personalise
•Privacy
•Security
OHT 7.5
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Service quality, satisfaction and loyalty
Figure: The relationship between service quality, customer satisfaction and loyalty
OHT 7.6
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Customer rating of online service quality elements
Figure: Customer ratings of importance of attributes of online experience
Source: J.P. Morgan report on e-tailing 2000
OHT 7.7
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Web site development tasks
Figure: Example of web site development schedule
OHT 7.8
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Prototyping stages
Figure: Four stages of web site prototyping
OHT 7.9
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Different potential audiences
Customers vary by
Staff
Third parties
New or existing prospects
New or existing
New or existing
Size of prospect companies
Different departments
Suppliers
Sales staff for different markets
Distributors
Location (by country)
Investors
(e.g. small, medium or large)
Market type
(e.g. different vertical markets)
Location (by country)
Members of buying process
(decision makers, influencers, buyers)
OHT 7.10
Media
Students
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
B2B audience matrix
Figure: Matrix for segmenting customer information on the Internet according to size
Source: Friedman and Furey (1999)
OHT 7.11
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Virtual
Supply Chain
Suppliers &
Partners
OHT 7.12
Web Connectivity
Internet
Extranet
Intranet
Resources
Suppliers &
Partners
Supplier
Supplier
Buyers
Buyers
Users
Users
Other
stakeholders
Other
stakeholders
FIGURE 3: The I-E-I Framework
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Online buyer behavior
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Directed information seekers
Undirected information seekers
Directed buyers
Bargain hunters
Entertainment seekers
OHT 7.13
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Internet impact on buyer behavior
Figure: How the Internet can impact on the buying process for a new purchaser
OHT 7.14
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Information quality attributes
Figure: Different aspects of high-quality information content of a web site
OHT 7.15
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Marketing-led design objectives
• Customer acquisition
– Proposition, recruitment offer
• Conversion
– Engage first time visitors
– Clear call-to-action
• Customer retention
– Content and offers should encourage repeat visitors
• Service quality
• Branding
– To reassure
OHT 7.16
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Example design – before
OHT 7.17
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Example design - after
OHT 7.18
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Site design issues
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Style and personality
Graphic design
Site organization
Site navigation
Page design
Online forms
OHT 7.19
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Narrow and deep navigation
Figure: (a) Narrow and deep and (b) broad and shallow organisation schemes
OHT 7.20
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Information processing stages
Stage
Description
Applications
1. Exposure
Content must be present for
long enough to be processed.
Content on banner ads may not be onscreen
sufficiently long enough for processing and
cognition.
2. Attention
User’s eyes will be drawn
towards headings and content
not graphics and moving
items on a web page
(Nielsen, 2000b).
Emphasis and accurate labelling of headings is
vital to gain a user’s attention. Evidence suggests
that users do not notice banner adverts, suffering
from ‘banner blindness’.
3.Comprehension
and perception
The user’s interpretation of
content.
Designs that use common standards and
metaphors and are kept simple will be more
readily comprehended.
4. Yielding and
acceptance
Is information (copy)
presented accepted by
customers?
Copy should reference credible sources and
present counterarguments as necessary.
5. Retention
As for traditional advertising,
this describes the extent to
which the information is
remembered.
An unusual style or high degree of interaction
leading to flow and user satisfaction is more
likely to be recalled.
OHT 7.21
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Website Tips…
Easy to find your way to the site (“click-on”)
Easy to find your way through the site (“click-through”)
K.I.S. strategy (don’t over-design)
Site = your company (brand) in Cyberspace
Constantly test and update (don’t change too often)
Avoid enormous graphics and heavy animation
Words, words, words…
Think locally, publish globally
Mixing technical skills with marketing knowledge
OHT 7.22
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
New eCommerce Trends and
Technologies
David Strom
david@strom.com
+1 (516) 944 3407
Centra Presentation 2/9/2000
OHT 7.23
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Agenda
• Build or buy your web storefront?
• What becomes success?
• Future trends
OHT 7.24
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Topic 1: Build or Buy Your Web Storefront
• Rent: outsource to a CSP
• Buy suite of software
• Build it yourself
OHT 7.25
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
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Evaluating CSPs
Do they offer storefront design?
Have in-house programmers?
Hosting of your own web server machine?
How many payment systems do they support?
What kinds of accounting reports do they
offer?
OHT 7.26
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Some CSP Examples
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www.psi.net/web/ecommerce.shtml
www.Best.com/bizcomm.html
www.Brainlink.com/html/saleslink.htm
www.Earthlink.net
IBM: mypage.ihost.com
www.Netcom.com
business.Mindspring.com/prodsvc/smbiz/
• www.outer.net/ONCommerce (OuterNet)
OHT 7.27
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Earthlink pricing explained
Program
Monthly fee
Setup fee
Starter Site
20
25
Total Access Acct. 20
(waived)
SSL cert.
10
20
Domain fee
75
Ecommerce
40
175
TOTAL
100
210
OHT 7.28
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CSP Approaches
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GeoShop/Yahoo
ViaWeb/Yahoo
iCat/Intel
Encanto
iTool
Others entering a very crowded field
OHT 7.29
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GeoShop/Yahoo
• Builds on GeoCities “communities” but for
merchants (www.geocities.com/join/geoshops)
• $25/month for just commercial listings
• $180/month (or more!) for actual transactions
– working with Internet Commerce Services Corp.
who uses Open Market Transact servers
(www.icoms.com/pp.htm)
OHT 7.30
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ViaWeb/Yahoo
• $100/month (<50 items) or $300/month
options
• CyberCash processing $500 setup
• Solid reporting and admin options
OHT 7.31
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iCat/Intel Commerce Online Hosting Solution
• Free for <10 items, $99/mo. for 100 items
• No per-transaction fees
• Email and browser-based notifications of
purchase completion
• Advanced items like upsell, featured products,
cybercash gateways
OHT 7.32
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iTool Demo
• www.itool.com/admin/controlpanel.cfm
• $25-$100/mo.
OHT 7.33
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Sitematic
• Flat rate for $40/mo
• Staging/production site concept
• More templates and controls
OHT 7.34
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Encanto
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Turnkey server/software for free!
Payment gateway included ($50 initial, $70/month)
Web storefront, shopping cart, catalog system
Also need secure cert, merchant bank account
All managed via browser, steps are clearly
documented
OHT 7.35
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
The Suite Approach
• Leading contenders
• What is part of the suite and what isn’t
• Prices and platforms
OHT 7.36
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Popular eCommerce Suites
Vendor, Product
Version
Price
Inex
Commerce Court
3.2
$ 50 - $995 NT
IBM
Net.Commerce
3.2
$5000 $20,000
Microsoft
SiteServer Commerce
3.0
$4600
OHT 7.37
Platform
NT, AIX,
Solaris,
AS/400,
S/390
NT
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Popular eCommerce Suites (con’t)
Vendor, Product
Version
Price
Platform
OM Transact
Open Market
4.0
$250,000
Unix
Intershop Online
Intershop
4.0
$5000
NT
Unix
WebSite Pro
O'Reilly
2.3
$800
NT, 95
OHT 7.38
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Four Typical Elements
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Catalog
Storefront designer
Ordering/inventory system
Shopping cart/check out system
OHT 7.39
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The Cold Hard Reality of Suites
Suites are nothing more than collection of
products
Lack integration among various elements
Difficult to setup, customize, and use
Require you to live “inside” their structure
Limited payment options
Sounds like early MS Office
OHT 7.40
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Payment Systems Included in Each Suite
Microsoft: Verifone, Buy Now
IBM (Net.Commerce): Verifone, SET/eTill
OpenMarket: Verifone
WebSite Pro: IC Verify, PC Authorize,
CyberCash, others
Intershop: CyberCash, ICVerify, others
OHT 7.41
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Sample Stores Included in Each Suite
Microsoft: 4 stores
IBM: eMall, simple and advanced sample
stores
OpenMarket: none
WebSite Pro: 1 bookstore
Intershop: 3 stores
OHT 7.42
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Database Support
Product
Databases Supported
Site Server
MS SQL, Oracle
Net.Commerce
DB2, Oracle
Inex Commerce
MS SQL, MS Access
iCat
4D, Sybase SQL Anywh
WebSite
MS Access
Intershop
Sybase SQL
OHT 7.43
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Dealing With ODBC
• Have to understand how to set up data
sources
• Intimate knowledge of your data structure
• Re-install ODBC drivers at least once!
• Best to start with built-in database
OHT 7.44
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Store Wizards Included in Each Suite
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Net.Commerce (the best)
WebSite Pro (but doesn’t do much)
Intershop (various wizards)
MS Commerce (although you’ll really need to
know COM!)
OHT 7.45
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Tips
‹ Don’t
install anything before making sure you
have everything!
‹ Downloads for free, but they expire
‹ Can you export existing files to these systems?
OHT 7.46
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Prices of DIY Products
Product
Inex
SoftCart
MallManager
WebCatalog
Saqqara
VPOS
WebMate
OHT 7.47
Type
Accounting
Shopping Cart
Catalog
Catalog
Search tool
Payment server
Development tool
Price
US$6000
900
2000
1600
700
2500
750
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
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Putting Together Your Own Solution
SQL Server database
CyberCash payment system
WebCatalog 3.0 (supports CCash)
IIS web server
Total price: <US$10,000
OHT 7.48
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Topic 2: What Becomes Success?
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Overview of eCommerce market
Review physical storefront success factors
Propose some definitions
Define success for the web
Draw up eCommerce principles
OHT 7.49
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
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Sad State of Today’s eCommerce
Marketplace
Poor quality tools
Hard-to-find stores
Limited payment methods
Credit card snooping perceptions
Older browser versions can’t view latest sites
OHT 7.50
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Case in Point: Buying a Bike Rack
Item not carried: outdated catalog
Telesales not familiar with web
No cross-sell or substitutions online
Needed three phone calls to complete
purchase
OHT 7.51
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Another Case: Buying Theater Tickets
• Web site doesn’t carry event information in
real time
• Orders are fulfilled weeks later
• No indication on web site of sold-out or nearly
so events
OHT 7.52
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Let’s Learn From the “Real World”
• Compare what works for physical stores
• Try to extend to the web
OHT 7.53
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
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Critical Success Factors for Physical
Storefronts
Location
Branding
Good service
Good product selection
Proper pricing and margins
Traffic
OHT 7.54
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
First Problem:
• None of these translate on the ‘net!
OHT 7.55
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Now Try to Agree on Definitions for Web
Stores
• What determines a good location?
– Position on a search page
– Nearness to popular destination
– Ad on a popular server
• What determines branding?
– Memorable domain name
– Popular search category destination
OHT 7.56
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
An Example of bad location: Montana Meats
• Link
• Can’t they afford their own domain name?
• www.company.com/~anything is BAD NEWS!
OHT 7.57
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
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Determining Traffic
Hard to do -- is it hits, page views, registered
users?
[HITS = How Idiots Track Success]
Hard to measure -- do you count gifs? Use log
files?
No general agreement on any metrics!
OHT 7.58
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
One Working Definition of Success:
• SURVIVAL!
• If a site is still running after 12 months, and
getting more traffic, it is a success.
OHT 7.59
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Does a site actually have to sell something?
• Many actual eCommerce sites don’t do the
complete transaction
• Require faxes or telephone calls!
• Some merely have catalogs
• Examples: Singapore Power Authority
• Cisco Connection Online
OHT 7.60
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Principles of Good eCommerce
Easy to find merchandize
Good service
Individual customization is key
Simple navigation
Make payments easy
Make buyer feel transaction is secure
Communicate effectively and frequently
OHT 7.61
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AMP Connect
Have customers in 100 countries
Speak many languages
Produce 400 catalogs covering 135,000 items
Mailings cost US$7MM/yr
Fax back cost US$800,000/yr
But you can’t buy anything directly!
OHT 7.62
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Solution: “Step Searching”
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Saqqara.com software to enhance Oracle database
Provide user feedback as they type in the query
Show how many matches in the database
Different mechanisms for searching:
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OHT 7.63
by part number
by alphabetical names
by part family
by picture even
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
AMP Old Screen
OHT 7.64
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
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AMP Connect (con’t)
And can set to list parts that are available in
specific countries!
Updated daily with over 200 item changes
Detailed drawings saves time for customers to
pick the right item
Saved AMP over US$5MM in production costs
Saved US$1MM in translation costs
OHT 7.65
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First Principle of eCommerce:
• Make it easy to buy!
OHT 7.66
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Amazon.com
• Services frequent readers with a variety of
programs
– Editorial comments
– If you liked this book, you’ll like...
– Notification of new books by author, topic
– Simplified “1-Click” ordering
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OHT 7.67
Uses simple pages and email
Associates program for commission kickbacks
Gift certificates via email
And ... lots of stuff to choose from
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Use Affiliates Programs Wisely
• They bring traffic to your doorstep
• Nice revenue sharing model
• Lots of them to choose from to model your
own on:
– AssociatePrograms.com
– Refer-it.com
• Shopnow.com (payment processing)
OHT 7.68
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A Different Take on Affiliates: ClickRewards
• Pays you in airline miles for your patronage
• Accrue miles on many sites
• You redeem benefits on their site
OHT 7.69
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Amazon vs Borders
• Borders link
• Cookies vs logins
• Who makes it easier to buy books?
OHT 7.70
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Update your directories!
• This one is more than a year old!
OHT 7.71
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Another Side of Service: Repeat Business
• Make the shopper feel part of the family
• Shopping as entertainment (online auctions)
• “Do what I mean” search function (Amazon
again looks at common misspellings made in
the previous 24 hours for book searches)
• Periodic targeted email updates and
reminders
OHT 7.72
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Second Principle of eCommerce:
• Deliver solid service!
OHT 7.73
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Dell positives
Most notable site for computer buyers
Customize the features you want via a web
form
Simplifies and personalizes the shopping
experience
WYSIWYB (buy)
OHT 7.74
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Dell problems
• Site is now very complex
• Print ads contain “eValue” codes
• Too many pages to get to actual PC
configuration
OHT 7.75
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Now Compare with Other PC Makers
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Gateway
IBM
Compaq
Micron
… which is easiest to customize your PC?
OHT 7.76
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Third Principle of eCommerce:
• Individual customization is key
OHT 7.77
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BMW Motors
Example of what not to do
Use gratuitous graphics
Cheesy low-res videos
Toys, not tools
OHT 7.78
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You Never Want To See This Screen!
OHT 7.79
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Compare with Subaru
• Find specific information about each car
• Can price options to your particular needs
OHT 7.80
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A better example: fishing licenses
• Simple, quick, and does the job with a
minimum of clutter
OHT 7.81
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How NOT to Design a Payment Screen
• http://www.netmar.com/new/norderform.shtml
OHT 7.82
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Common mistakes with payments
• Provide too few or too many order
confirmation pages
• Confusing methods and misplaced buttons on
order page
• Make it hard for customers to buy things
• Don’t make your customers read error screens
OHT 7.83
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Fifth Principle of eCommerce:
• Make payments easy!
OHT 7.84
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
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Perceptions of Credit Card Snooping Still
Exist
But are largely popularized by media, not
consumers!
Internet fraud stories are still common from
both buyer and seller sides
Just starting to see authentication services
(such as Cybersource) ramp up
Trust will take a long time
OHT 7.85
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Sixth Principle of eCommerce:
• Make the buyer feel secure!
OHT 7.86
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
How Should You Use Email?
• When to communicate?
• What to communicate?
• When is email helpful and when is it spam and
annoying?
OHT 7.87
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Email Uses in eCommerce
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Sending order acknowledgement
Sending shipping notification
Purchase receipt
Telling customer when item is in stock or on
sale
• Responding to specific queries about service
issues
OHT 7.88
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
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Email Receipts Should Contain the
Following Items
Total price, including shipping
Your address and the store’s
Items ordered
Whether they are in stock or not
When they shipped
Bonus: order number and URL to view this
info online, link to UPS/Fedex tracking system
OHT 7.89
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
When to Send a Customer Email?
• To acknowledge the order was placed
• To say items shipped (or not ) and money
changes hands
OHT 7.90
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Seventh Principle of eCommerce:
• Communicate effectively and frequently!
OHT 7.91
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Communicate Effectively and Frequently
• Get your response systems in place
• Tie in your storefront with any existing
customer relationship management tools and
call centers
• Send replies within an hour of initial order,
within 24 hours of any query
OHT 7.92
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Topic 3: Future Trends
• eWallets and secure transactions
• Caching technologies
• Internet Appliances
OHT 7.93
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eWallet Trends
• eWallets will eventually go away
• SET becomes a server-side issue
• SSL still dominates eCommerce transactions
for many years
OHT 7.94
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Caching Trends
• More caching appliances as time goes on
• Better and cheaper caching devices appear
• Most ISPs will use them within a few years if
they want to retain customers
OHT 7.95
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Internet Appliance Trends
• More of them and cheaper too
• Still for SO/HO environments mainly, although
that is changing
• Already some vendor consolidation
OHT 7.96
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Conclusions
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eCommerce crosses many different skill sets
Software is still too dicey in many areas
Standards aren’t much use right now
Suites don’t offer much in the way of
integration
• DIY may be the best solution
OHT 7.97
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Thanks!
• David Strom
• +1 516 944 3407
• david@strom.com
• Copies of this presentation and other
eCommerce resouces can be found at
http://strom.com/pubwork/ecommerce
OHT 7.98
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
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