Business-to-Consumer
Presented by Stacey Riegel
Spring 2003
Business-to-Consumer
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Defined
The Business Side
The Customer
The Business/Customer Relationship
B2C and the Real World
Exercise
Summary
Reading List
What is Business-to-Consumer?
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B2C
E-commerce
E-business
E-tailing
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B2C = 10%
B2B = 90%
The Business Side
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Benefits Vs. Challenges
The Market
Needs of the Consumer
Continuous Research
Benefits to B2C
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Reduce Intermediaries
Reduce Labor Costs
Shorter Transaction Times
Improved Customer Service
Expanded Market
Challenges
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Costly
Organization Wide Commitment
Continuous Change
New Intermediaries
Scaleable & Flexible Supply Chain
New Age Intermediaries
Customer
Portal
Aggregator
e-Retailer
Infomediaries
The Competitive Edge
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Quick to Evolve
Solutions to Offline
Compromises
Personalized Service
Strong Brands
The B2C Customer
Empowered by Technology
Consumer Concerns
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Privacy
Security
Consumer Frustrations
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Lengthy Web Forms
Complicated Sites
Minimal Assistance
Undisclosed Expenses
Building the Business/Consumer
Relationship
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Unique Service for the
Consumer
Trust
The Strategy
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Converting Visitors to Buyers
CRM
Web Assurance Services
About CRM
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Customer Relationship Management
Developing Customer Profiles
Forecast Customer Behavior
CRM Advantages
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Committed Customer
Lower Sales and
Service Cost
Building Trust
• Higher Standards of Privacy
• Web Assurance Services
• Disclosure of Sales and Privacy Policies
Web Assurance Services
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BBBOnline (www.bbbonline.org)
CPA WebTrust (www.cpawebtrust.org)
VeriSign (www.verisign.com)
TRUSTe (www.TRUSTe.org)
B2C – The Real World
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Nexchange –
solving the abandoned shopping cart case
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Lands’ End –
an e-commerce pioneer
Nexchange and The Abandoned
Shopping Cart Case
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Average abandonment rate = 2/3
Attacking the Problem
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Decrease
Abandonment
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Increase Sales
Lands’ End – Leadership in B2C
“What’s 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.
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Disclose all costs
Show user’s what’s
in their carts
Allow customers to
change orders
Save cart contents
for return visits
8 Best Practices Continued . . .
Easy use of special promotions
6. Beef up customer service
7. Encourage shipping to multiple
destinations
8. Short forms
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The Customer -
The Key to Success
Reading List
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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 4th Edition; Roberta S. Rusell, Bernard W. Taylor III
Land’s End: IBM technology a perfect fit for its B2B solution; an IDC e-business
case study; www.3.ibm.com