E-Commerce & Strategy Individual assignment IFFRAH MAJEEDAH HJ KAMARUDDIN NG19477 TASK A REPORT SUBMITTED FOR THE HIGHER NATIONAL DIPLOMA IN COSMOPOLITAN COLLEGE OF COMMERCE & TECHNOLOGY JANUARY 2022 i ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Higher Nationals Assignment Brief – BTEC (RQF) Higher National Diploma in Computing Student Name /ID Number Iffrah Majeedah Hj Kamaruddin / NG19477 Unit Number and Title Unit 39: E-commerce & Strategy (D/615/1683) Academic Year 2021/2022 Unit Assessor Dk Nur Liana binti Pg Haji Omar Alli Assignment Title Understanding the fundamentals ecommerce system Issue Date 29 November 2021 Submission Date Part A – 6 January 2022 Part B – 10 March 2022 IV Name Dennis Tanjusay IVed Date 25 November 2021 Submission Format: You should submit a zip file containing: Complete Cover Page with Signature – Rename as: L5-C-ECOMS-BTECID-Cover Page.docx Complete Declaration Form with Signature – Rename as: L5-C-ECOMS-BTECID-Declaration Form.docx Individual written report (preferably an MS Word document) – Rename as: L5-C-ECOMS-BTECID-O.docx Complete Website folder Video of the website not more than 3 minutes You must rename your zip file as L5-C-ECOMS-BTECID.docx. Please note that assignments submitted by other names will not be marked. This should be written in a concise, formal business style using single spacing and font size 12. You are required to include table of content, introductions and make use of headings, paragraphs, and subsections as appropriate, and all work must be supported with research and referenced using the Harvard referencing system. Unit Learning Outcomes: LO1: Examine the strategies employed and the impact of E-Commerce on business organisations. LO2: Analyse the hardware, software, web-based and database technologies involved in setting up a secure E-Commerce site. LO3: Design an E-Commerce strategy based on a given end user requirement or specification. LO4: Implement an E-Commerce strategy based on a given end user requirement or specification. AUTHENTICITY STATEMENT I certify that the attached material is my original work. No other person’s work or ideas have been used without acknowledgement. Except where I have clearly stated that I have used some of this material elsewhere, I have not presented it for examination / assessment in any other course or unit at this or any other institution. SIGNATURE: ………………………………………. DATE: ……6 January 2022…………………. ii ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Acknowledgement I would like to express my very immense appreciation to my lecturer Dk Nur Liana binti Pg Haji Omar Alli for helping me complete this report and I would also like to expand my gratitude to all those who have directly and indirectly guided me in writing this assignment. iii ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Table of Contents Higher Nationals ........................................................................................................................................... ii Assignment Brief – BTEC (RQF).................................................................................................................... ii Acknowledgement ...................................................................................................................................... iii Customer Expectations ............................................................................................................................... 1 Knowing and understand your customer ............................................................................................. 1 Importance of customer expectation ..................................................................................................... 2 Factors influencing customer expectations ........................................................................................... 6 How to meet customer expectations ...................................................................................................... 7 Failing to meet expectations ................................................................................................................. 10 Computer technology................................................................................................................................ 11 Importance of computer technology in business ................................................................................ 11 Business Computer Functions ............................................................................................................. 11 Technologies required .......................................................................................................................... 12 Hardware and Software ................................................................................................................... 12 Network Technology ......................................................................................................................... 15 Web architecture ............................................................................................................................... 16 Walmart ..................................................................................................................................................... 19 IKEA .......................................................................................................................................................... 25 The Home Depot ....................................................................................................................................... 29 Communication technology...................................................................................................................... 33 Importance of communication technology in an organization ......................................................... 33 Example of communication technology .............................................................................................. 38 Database technology ................................................................................................................................. 61 The Role of Database ............................................................................................................................ 61 Code........................................................................................................................................................ 63 References .................................................................................................................................................. 68 iv ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Customer Expectations Customer expectations refer to what customers expect from a product or service in terms of perceived value, behavior, service, or benefits. They are generated as a result of the 'learning' process and can happen fast because first impressions are crucial. These expectations, once created, can have a substantial impact on decision-making processes and are difficult to modify. Knowing and understand your customer Your sales and marketing activities will be more productive if you know more about your customers. Finding out who they are, what they buy, and why they buy it is definitely worth the effort. If you are selling to other firms, you will need to figure out who makes the choice to purchase your product or service. By conversing with your consumers, you can learn a lot about them. Inquiring as to why they are purchasing or not purchasing what they may want to purchase in the future, as well as what other demands they have, can provide a good picture of what is essential to them. Emphasizing the benefits that your product or service provides to your clients drives strong sales. It is lot easier to provide them solutions if you understand their problems. It is also a good idea to keep an eye on what is going on in your customers' markets and lives in the future. Knowing the trends that will affect your clients allows you to anticipate what they will require and provide it to them as soon as possible. You may do your own market research, and there are numerous current reports that can assist you in gaining a better understanding of where your clients' markets - and your organization are headed. 1 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Importance of customer expectation Customer expectations have increasingly risen in tandem with the growth of online retailing over the last two decades. Advances in eCommerce have created a "want it now" environment, and online retailers who fail to match these expectations will fall behind their international competition. Customers also expect businesses to respond quickly to their needs. The 'want it now' culture extends to customer service, and if you don't respond to consumers' questions and fix their issues quickly, you will not be able to survive. There are six major areas that online retailers need to address when it comes to meeting customer expectations: Enable convenient shopping Provide fast delivery Ensure privacy protection Provide detailed product information and stellar reviews Give a wide variety of options Perfect your customer support Enable Convenient Shopping The desire for convenience has risen in tandem with client expectations. Hyperconnectivity and broad 4G network availability, combined with people's busy lifestyles, has resulted in a surge in mobile eCommerce growth. By 2021, mobile devices are estimated to account for 54 percent of all eCommerce sales. However, mobile eCommerce should not be viewed in isolation; omnichannel interactions are becoming the norm, with purchasers switching channels and even devices before making a purchase. You must provide a flexible shopping experience as an online seller. This applies not only to your website, but to all of your social media outlets as well, such as Facebook and Instagram, regardless of the device they are using. Offering in-store pick-ups, one-click buying, recurring orders, and voice activated purchasing can all help your consumers live a little easier. You will build lasting loyalty if you can modify the way you connect with your clients to meet their lifestyle. 2 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Providing fast delivery Fast delivery is one of the most important features of online shopping, and it can make or break a sale, regardless of where your customers are buying from. Customers' expectations for speedy delivery have risen as a result of online marketplace behemoths like Amazon. Amazon just reduced its two-day free Prime shipping to one day, and Walmart has followed suit. Orders purchased between 1 and 4 p.m. in the United States should be eligible for next-day delivery, according to 45 percent of consumers in the United States. Offering this type of service can help you stand out in a world when people crave instant gratification. Customers demand not only quick delivery, but also a range of delivery alternatives at reasonable pricing. Keeping these promises might help to create trust and loyalty. For example, while online customers like the convenience of ordering online, many still prefer to pick up their items in person. Almost two-thirds of the population has used Buy Online, Pick Up in Store programs. The major reasons for this are to avoid delivery prices, be more immediate, and be more convenient. According to a consumer poll performed by Internet Retailer and Bizrate Insights in the United States, nearly 90 percent of people are ready to wait longer for an online order to arrive in return for free shipping. It improves the online buying experience and increases your chances of closing a transaction by seamlessly merging the online and offline worlds. Ensure that you meet your consumers' expectations by shipping and delivering quickly. They are not expecting anything less. Ensure privacy protection While purchasing online, online buyers all over the world are becoming increasingly concerned about their privacy and data security. Shoppers increasingly expect a safe and secure purchasing experience after large-scale data breaches from firms like Facebook. According to recent surveys, only 13 percent of US consumers trust online businesses with their data, and 84 percent will not shop with a company who has had a data breach. The stakes are high. If you do not secure consumer data, you risk ramifications from regulators as well as consumer criticism, with some threatening to take their business elsewhere if you do not. To acquire the trust of future and present customers, you must include cyber security and privacy as part of your strategy as an online merchant. According to a poll conducted by Salesforce, 84 percent of customers in the United States and the United Kingdom are more loyal to organizations that have 3 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment effective security procedures. Your data governance and privacy protection policies should be transparent, and you should address any concerns that online buyers may have. All online retailers will need to invest in this area in the future. Provide detailed product information and stellar reviews Consumers do not enjoy surprises when it comes to online shopping, and they want to view all essential information before making a purchase. You should provide correct information on products, order status, pricing, and arrival dates in order to appear reputable and maximize sales potential. These can then be combined with positive client feedback to demonstrate the product's worth and establish confidence. Consumers are less forgiving of false or ambiguous descriptions, and if they encounter this, they will become doubtful. It is therefore in your best interests to avoid broad generalizations and to be open and honest about any additional charges. It is an opportunity to stand out by offering users with reliable, highquality information they can rely on. Consumers consider customer feedback when determining whether or not to make a purchase from an online store. In the United States, 91 percent of 18-34-year-olds trust online reviews as much as personal recommendations, and in the United Kingdom, 46 percent of online shoppers check star ratings for online stores before making a purchase. To establish good evaluations across all of their marketplaces, review sites like Trustpilot, and their website, online retailers should use feedback software like xSellco Feedback. Give a wide variety of options Consumers anticipate a diverse selection of options while purchasing online. This can include extra payment options, shipping, and delivery options, and even customer support channels. Allowing your clients to shop on their own terms allows them to enjoy the experience. Distinct countries have different payment choices and preferences. You should accept credit cards, PayPal, Amazon Pay, Visa checkout, Bank Transfer, and Apple Pay, among other payment methods. If you are exporting to multiple countries, you will want to consider accepting payment via both well-known global payment methods and popular local payment methods. When buying online in Japan, for example, credit cards are more prevalent, whereas in Germany, direct debit and wire transfers are more widespread. When it comes to customer service, online buyers expect a range of options. They want assistance available through a variety of channels, including chat, phone, email, and social media. When it comes to concerns, customers have varying needs and levels of urgency, so giving them the option to send a fast 4 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment message rather than waiting on the phone can be extremely beneficial to the online business. You must not only offer a choice of options, but you must also be able to reply quickly and satisfactorily. When it comes to good customer service, expectations are high; in the United States, providing excellent customer service is viewed as critical to differentiating your product or service. Keeping track of all of these channels can be time-consuming and difficult, so using an eCommerce-specific helpdesk like eDesk will greatly assist support workers and may even cut customer support costs. Buyers' expectations are rising in the area of customer service, and you need to equip your staff with the correct software to handle them. Perfect your customer support Customer service is both a competitive advantage for those who do it effectively and a death knell for those who do not. If you disappoint a customer, they will be unwilling to do business with you again, and they may even submit a poor review. This will have an impact on future purchasing decisions made by visitors to your site, as well as your eBay Best Match position and chances of winning the Amazon Buy Box. When things go wrong for online sellers, if you can respond quickly and clearly, dealing with their questions and resolving tickets as a team, you may be able to improve your online reputation. By integrating all incoming messages from anywhere you sell into a simple, easy-to-use inbox that your employees will appreciate, eDesk will put your organization in the best position to manage customer care swiftly and effectively. 5 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Factors influencing customer expectations A variety of factors influence customer expectations, however there are a few major elements that are regarded as significant influences on consumer expectations. Previous Customer Experience Customer expectations are influenced by a number of things, one of which is their previous experience with your company. If they are very satisfied current customers, they will have high expectations, which must be met. However, if their previous experience has been poor, they may lack confidence in your company and have low expectations. Customer Communications Your customers' expectations may have been influenced by every piece of outbound communication from your company. Blog posts, tweets, site pages, emails, print advertisements, radio and television advertisements all contribute to your customers' expectations. All of your messages must be truthful, consistent, clear, and unambiguous. Reviews and Word of Mouth Because the internet is such a powerful research tool, you can expect your customers to do their research before making a purchase. They will have seen reviews of your product or service, as well as possibly reviews of your company. They might have also read what's being said in forums and on social media. What they learn from these sources will shape their expectations, so pay attention to what they say. Previous Experience with Other Companies People's expectations are heavily influenced by their previous interactions with other businesses and organizations. Customers nowadays expect the same high levels of exceptional customer service from all businesses and organizations, regardless of whether they are in the same niche as you. Customer’s Needs and Preferences Customer service is always required. In exchange for their continued assistance, they demand quick issue resolution and hassle-free transactions. Customers' shopping habits might have a 6 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment significant impact on their goals. You'll also need to do some research to learn about each customer's internet algorithms. How to meet customer expectations Understanding how customer expectations are established and how they vary over time is a wonderful place to start when it comes to managing customer expectations. It should go without saying that understanding your customers' expectations is critical to your company's success. It's also important to understand how expectations differ. Customer expectations in hotels, for example, differ significantly from those of an insurance company. Here are a few pointers to help you not only meet but also greatly surpass their customer expectations. Communicate Clearly and Honestly As previously stated, what your customers have read and maybe seen will have influenced their expectations. You should ensure that the information you provide is clear, consistent, complete, and honest because you have complete control over how you communicate with your customers. Customer experience has been often cited as being negatively impacted by a lack of clarity in messaging. Here are a few basic guidelines: Ensure that the information on your website is correct, complete, consistent, and up to date at all times. Your website and all communications must utilize language that is appropriate for your customers. Do not use technical jargon to confuse them. Use the appropriate phrase and tone of voice to engage them. Your social media communications must be timely and relevant. What is said must be accurate, truthful, and upbeat. Advertising and promotion must not be misleading or dishonest. All printed materials, such as brochures, booklets, and flyers, must be factual, truthful, and easy to understand. Your organization's video and visual messaging must be consistent with other communications 7 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment All service agents and employees that interact directly with customers must be properly trained and skilled. Their information must be consistent with other channels of communication, and their tone and demeanor must be appropriate. Tell your consumers how long they will have to wait. People nowadays anticipate nearinstant responses, but this is not always possible, especially when working with a global consumer base. Customers' expectations can be successfully set, and dissatisfaction avoided by clearly notifying them of how long they would have to wait. Cultivate Loyalty All businesses benefit greatly from cultivating customer loyalty. Retaining an existing client is significantly less expensive than acquiring a new one. Furthermore, loyal consumers can be extremely useful in discovering and defining shifting customer expectations. The following are some basic strategies for increasing customer loyalty: • Always personalize conversations by referring to them by their first and last names. • Assuring that each customer is treated with respect. • Constantly rewarding them for their patronage and loyalty. • Communicating with them on a regular basis. • Pay attention to the small things that might have a big impact on client expectations. Monitor Your Market and Beyond What your clients and consumers have encountered from other firms in your field and elsewhere will have a big impact on their expectations. If a consumer has used an online 'chat' facility on another website to seek customer service and received a response in less than 30 seconds, they are likely to expect the same from you when you install an online chat tool. Similarly, if a consumer has previously received a quick response via social media from an unconnected company or organization, they are likely to expect the same from your social media platforms. You should be aware of these expectations and, ideally, try to meet or exceed them. If this is not possible, you must communicate openly with your customers in order to create realistic expectations. 8 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Be Expert Your employees must be recognized as specialists in the work they do and the services they provide. Every member of staff who interacts directly with customers, from front-line service representatives to switchboard operators and sales representatives, must be appropriately trained and confident in their abilities to meet even the most exacting consumer expectations. Always Follow Up Whether or not a company follows up after a first contact can have a big impact on the customer experience. For example, if a consumer contacts a service desk by phone or online chat and receives a resolution to their problem, the customer should be contacted again, potentially by email, to confirm the recommendations and that the solution was successful. Similarly, it is a good idea to follow up with customers after they have made a purchase to make sure they are happy. Simple, easy-to-complete customer satisfaction surveys are a terrific method to follow up and get some potentially useful feedback from your customers. Discover and Exceed You will be in a terrific position to learn about your consumers' anticipated expectations if you create a rapport with them. What do they want to achieve in the future? What do people expect from the products or services that your industry provides? What else are they going through that is shaping their expectations of you? With this invaluable information, your company will be able to not only meet, but also greatly surpass, customer expectations. 9 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Failing to meet expectations Customers will take their business elsewhere if a company fails to match their expectations. About 68 percent of consumers who do not return to a firm do so because of poor customer service and a sense of apathy on the part of staff and management. Client complaints might alert you to whether or not your company is meeting customer expectations. You may improve customer service by taking the following steps: • evaluate the problem areas • train employees in customer service and sales abilities • rotate employees so that they can gain experience in different areas • promote and support teamwork • review recruiting and selection methods 10 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Computer technology The activity of developing, building, and programming computers is known as computer technology. Computing refers to any activity that involves the use of computers to organize, process, and communicate data. It entails both hardware and software development. Computing is an important and vital part of today's industrial technologies. Importance of computer technology in business Computers have become into indispensable business tools. They are employed in every part of a business, from product development to marketing to accounting and administration. It is vital for business owners to take the time to select the appropriate computers, software, and peripherals for their company. The variety of modern technology, from smartphones and tablets to massive desktop systems, can make selecting the ideal technology for your company challenging. Business Computer Functions Most business processes now involve the use of computers. Here are some of them: • Internal and external communications: Companies use computers to communicate internally and externally via email, messaging systems, conferencing, and word processing • Research: Companies can utilize search engines and proprietary databases to look up industry trends, patents, trademarks, potential clients, and competitors. • Media Production: Computers are currently utilized to create various sorts of media, such as graphics, video, and audio. • Data Tracking and Storage: While paper files containing hard copy documents are still used, firms also use software and the cloud to store and manage their data. • Product Development: To build new products and services, developers use computers. • Human resources: Software and internet services are used to manage internal HR operations and payroll systems. 11 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Technologies required Hardware and Software Hardware and software make up computer systems. The central processing unit (CPU), hard drive, display, printer, keyboard, and mouse are all examples of hardware in a computer. The programs that run on a computer are known as software. A computer system's software allows the hardware to work and the user to complete tasks. System software and application software are the two forms of software that make up a computer system. System software Any program that aids in the operation or management of a computer system is referred to as system software. Operating systems, security software, and file management software are all examples of this. Applications software Any software that is installed on the system and allows the user to execute a task is known as application software. A word processor, for example, allows users to type documents and a browser allows them to view web pages. Another example are Excel, PowerPoint, Google Chrome, Photoshop, MySQL and others. Web server A web server is software and hardware that responds to client requests via the World Wide Web using HTTP (Hypertext Transfer Protocol) and other protocols. A web server's primary responsibility is to show website content by storing, processing, and distributing webpages to users. Web servers provide SMTP (Simple Mail Transmission Protocol) and FTP (File Transfer Protocol) for email, file transfer, and storage, in addition to HTTP. Web server hardware connects to the internet and allows data to be transferred with other connected devices, whilst web server software regulates how users access hosted content. The client/server concept is demonstrated through the web server operation. Web server software is required on all computers that host websites. 12 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Web servers are used in online hosting, which is the storage of data for websites and web-based applications. Uses of web servers as examples Web servers are frequently included as part of a broader package of internet and intranet-related programs that include: Sending and receiving emails Requesting and downloading files via File Transfer Protocol (FTP) and Creating and publishing webpages Browser A web browser, also known as a "browser," is a program that allows you to access and see webpages. Microsoft Internet Explorer, Google Chrome, Mozilla Firefox, and Apple Safari are all popular online browsers. A web browser's principal role is to render HTML, the code that is used to construct or "markup" webpages. When a browser loads a web page, it processes the HTML, which may contain text, links, and references to pictures and other elements like CSS and JavaScript functions. These things are processed by the browser, which then displays them in the browser window. Web authoring tools A website construction system that works similarly to a desktop publishing tool in that it allows users to create Web pages visually. The appropriate HTML and JavaScript are generated using a Web authoring application, and users can go back and forth between the produced pages and the code. The software's design tools are used to assess it at a high level. The clarity of the generated documentation and code impacts how readily the site can be changed at a low level. Example of web authoring tools: Word Processors, HTML Editors, Online web page builders, Plain Text Editors and Desktop Publishing Programs. 13 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Shopping cart software On an online retailer's website, a shopping cart is a piece of software that makes purchasing a product or service easier. It receives the customer's payment and arranges for the information to be distributed to the merchant, payment processor, and other stakeholders. Example of shopping cart software: Magento, Shopify and BigCommerce. Database system A database's primary purpose is to digitally store information that can be conveniently collected, accessed, and transmitted at a later date. Information such as transactional or systems-oriented data can be structured and tracked using this system, depending on the parameters. This also allows companies to examine and track data about products, sales, and customers that have been entered into the database. A database's primary function is to store data. Do you have a question concerning a client's order? Check the database. Do you want to know how much a thing cost? Check the database. A web application can ignore the actual data and focus on the presentation and behavior of that data by employing a database. As a result, the web application's code and logic are much reduced and easy to comprehend. If all items include photos, for example, the web application only needs to request that data — an image — and display it as a product preview. It does not matter if there is only one image or three, or what the images are portraying. The application just anticipates receiving an image URL, which it will then show. Example of Database system: PHPMyAdmin Browser and Platform compatibility An eCommerce platform is a software solution that helps online retailers to manage their operations from beginning to end. eCommerce website builders, accounting and inventory management systems, and customer support infrastructure are all examples of this type of service. Example of Browser and Platform compatibility: Shopify, Big Commerce, Wix.com and Woo Commerce. 14 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Network Technology Protocols A protocol is a standard set of rules that allow electronic devices to communicate with each other. These rules include what type of data may be transmitted, what commands are used to send and receive data, and how data transfers are confirmed. Protocols are available for a variety of purposes. Wired networking (e.g., Ethernet), wireless networking (e.g., 802.11ac), and Internet communication are some examples (e.g., IP). There are dozens of protocols in the Internet protocol suite, which is used to send data over the Internet. Example of Protocols: HTTP, HTTPS and SMTP Domain name A web domain is an actual Internet presence, such as a web page. A web domain name, more specifically, is a substitute for the Internet Protocol (IP) address. We can substitute the IP address 207.97.195.109 with a domain name like www.study.com, for example. The basic goal of a domain name is to make it as easy as possible for visitors to find your website. Your web domain name is your online identity, and it should be unique enough to distinguish you from the competitors while also being detailed enough to convey crucial information about you or your company. In other words, just as a shop with unique and attractive storefront windows generates a picture of what's inside, a web site with a great domain name creates a picture of what's within. Prospective clients can get a decent idea of what your web site is about by gazing into the windows (your domain). Example of Domain name: Study’s domain name is “Study.com”. 15 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Web architecture Client-side scripting Client-side scripting is a technique for running a web-based computer program on the user's computer rather than the website's host computer. It works by way of a script, which is processed by the user's browser. The fundamental benefit of client-side scripting is that it allows a web page to be customized to the user's individual data and preferences rather than being a static page that appears the same to all users. Traditionally, client-side scripting is used for page navigation, data validation and formatting. Example of Client-side scripting: HTML, CSS and JaveScript. Server-side scripting Server-side scripting is a web design technique that allows the process or user request to be executed on the same server as the website. Server-side scripts provide a user interface, limit access to proprietary data, and assist in maintaining control over the script source code. Serverside scripting is frequently used to provide a customized user interface. These scripts may compile client data for use in personalizing responses based on those data, the user's requirements, access rights, and so on. Example of Server-side scripting: PHP, Java and Python. Browser cookies A cookie is a little text file that websites you visit save on your computer. When you return to a website, the cookie allows the website's supplier to recognize your navigation. Cookies can be used to save user preferences and other data. When you visit a new website, cookies are used to identify you. Your web browser receives a small trickle of identifying information from the web server, which stores the website's data. "Name-value" pairs are used to identify and read browser cookies. These inform cookies where to send cookies and what data they should remember. 16 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Adding interactivity with plugins A plug-in is a software component that may be added to a program to offer support for specific features or functions. A plugin's objective is to enhance the functionality of online apps or computer programs. If a firm wishes to encrypt its internal email interactions, for example, it can create and install a special plug-in if the email client doesn't support it by default. Plug-ins can only be used in conjunction with the host application and can never be used alone because they just extend current programs. Consistent navigation menu/ layout on all pages Website layouts are essentially patterns that define a website's whole structure. The data is organized in accordance with the website's goals and objectives. The visitor follows the exact website layouts that you used to visualize the website when navigating through it. Its purpose is to organize the information on a website for both the website's owner and users. It creates distinct navigation paths within web pages and prioritizes the most crucial aspects of a website. Data transmission Data transmission is the process of transferring digital or analog data to one or more computing, network, communication, or electronic devices through a communication medium. It allows devices to communicate and transmit data in a point-to-point, point-to-multipoint, and multipoint-to-multipoint environment. There are two types of transmission: Serial data transmission Parallel transmission 17 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Serial data transmission When sending data between two physically distinct devices, especially when the distance between them is greater than a few kilometers, it is more cost-effective to employ a single pair of lines. Data is transferred one bit at a time, with each bit having a set time interval. Bit-serial transmission is the name for this type of transmission. Parallel transmission The distances between distinct subunits in a processing or communication device are far too short. As a result, it is common practice to send data between subunits using a separate wire for each bit of information. Each sub-unit is connected by many wires, and data is transferred in a parallel way. This way of operation ensures that each word is transferred with the shortest possible delay. Bandwidth The amount of data that may be transferred from one point to another inside a network in a given amount of time is referred to as bandwidth. Typically, bandwidth is measured in bits per second and expressed as a bitrate (bps). Website owners can give more diverse functionality and material on their pages with greater bandwidth, making them more appealing to visitors. The number of users and the pages they visit are other key considerations. As a result, if a person leaves the website after reading only one page, the bandwidth consumed will be lower than if they load many or even all of the website's pages. 18 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Walmart Although e-commerce accounts for only 2.8 percent of Walmart's overall revenues, the company has had a lot of success by merging customers' in-store and mobile experiences. While Walmart has continued to expand its physical business through acquisitions and the opening of new stores, the corporate headquarters has been attempting to improve the digital experience. Customers who prefer to shop online yet pick up their products at any of Walmart's physical stores can take advantage of the company's new pick-up services. The company redesigned its website in 2017, emphasizing on regional "trending" sections for popular items and checkout services tailored to certain regions or consumers' preferred locations. The outcomes are self-evident. According to SailThru, the company enjoyed a 40 percent growth in e-commerce sales and a stock boost of more than 10% after announcing second-quarter earnings in 2017. Its mobile app is responsible for a large part of its mobile success. Walmart was one of the first companies to use the technology. So much so that it was awarded a prize for its mobile application in 2012. The company is continuing to improve. Walmart just released its new Store Assistant mobile app, which includes a new set of capabilities to improve the shopping experience at Walmart. The year 2020 will be remembered as the year when the eCommerce narrative transformed dramatically. Instead, then focusing solely on Amazon, there has been a lot of talk regarding Walmart, Target, and Home Depot's eCommerce performance. Walmart's third-quarter 2020 eCommerce sales increased by 79 percent, making it the country's second-largest online retailer. Walmart behind Amazon's 39 percent share of eCommerce sales in the United States by a considerable margin, but Walmart is still gaining. 19 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Before and after Walmart using e-commerce Walmart has always been coy about the scale of its digital business, which is dwarfed by Amazon's, which is 5.5 times larger in the United States, according to eMarketer. However, because to the way it mixes shops and e-commerce, Walmart has made huge progress in recent years on the e-commerce front, and it is now the second largest online retailer in the United States. Even so, there are hints that the Walmart behemoth is slowing down. Walmart's e-commerce sales in the United States increased by 6% year over year in the most recent quarter. Furthermore, in the fiscal second quarter, internet sales grew just slightly faster than in-store sales. The low-single-digit increase comes after online sales more than doubled last year as the epidemic prompted more customers to go online and place orders that they would normally pick up curbside or in a Walmart store. Walmart performed admirably in this regard. Store visits in the United States increased by 6%. The decreasing e-commerce growth was brushed off by Wall Street, with shares scarcely moving. Furthermore, despite fierce competition from the likes of Kroger and, of course, Amazon, Walmart gained market share in groceries, thanks to initiatives to beautify stores, compete harder on pricing, and strengthen supply chains. "Walmart's ongoing investments were validated by stores, which were the primary driver of a $1 billion increase in U.S. operating income on $5 billion in higher revenue, which is particularly impressive given the strength of its 20 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment lower margin grocery-equivalent business, which continues to grow share despite its massive scale." Moody’s vice president Charlie O’Shea wrote in a research note. 21 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Pros and cons Walmart's e-commerce business is growing, which is attracting more brands and sellers to join and expand on its platform. Some businesses and sellers, on the other hand, prefer to sell only on Amazon.com, which is the world's largest online retailer with millions of Prime customers. However, there are a number of advantages and disadvantages to selling on Walmart Marketplace that businesses should think about. Pros of Selling on Walmart Marketplace Limited Seller Fees One of the most appealing aspects of selling on Walmart is the marketplace's low costs for brands and sellers. A referral fee is only required of merchants when their product is purchased. The referral fee varies depending on the product type; for example, 8% for video game consoles, 15% for groceries, 20% for jewelry, and so on. Amazon, on the other hand, charges its sellers monthly fees as well as variable closing fees on top of its referral fees. Limitless Product Assortment Walmart does not impose any SKU minimums or maximums on its marketplace sellers. As long as their products aren't on Walmart's forbidden product list, brands and sellers can use their complete inventory on Walmart Marketplace. This functionality is extremely useful for companies with a large product line and inventories for all of their SKUs. Create Your Own Return Policy On Walmart Marketplace, brands and sellers can create their own return policies. Sellers have more control over return policies and can set terms that are both beneficial to their company and fair to their customers. Amazon, on the other hand, requires its vendors to follow or surpass its own return policy. When brands and sellers register to sell on Walmart.com, they must submit a return policy that is under 4,000 characters long. Because Walmart's third-party sellers are in charge of fulfillment and customer care, a return policy is essential. 22 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Less Competition Despite the fact that the Walmart Marketplace has over 70,000 active merchants and is growing, it is nowhere near the 2.4 million active sellers on Amazon's marketplace. Walmart's platform has fewer sellers than Amazon's, which benefits brands and sellers by reducing competition. Because there are fewer vendors competing for the Buy Box on Walmart's marketplace than there are on Amazon's, brands and sellers stand a better chance of getting it. Reach a New Customer Base Walmart's marketplace receives over 120 million unique visitors per month, as previously stated. Walmart's Every Day Low Prices (EDLP) guarantee appeals to customers who are shopping for low-cost merchandise. Brands and retailers can reach a new client base that they might not have been able to reach on Amazon.com or their own website otherwise. Cons of Selling on Walmart Marketplace Strict Price Requirements Walmart is dedicated to providing customers with the best possible prices on its marketplace. While brands and sellers are free to set their own prices for their items, they must adhere to Walmart's Price Parity and Price Leadership Rules. Price parity prohibits brands and sellers from undercutting one other on other platforms. If the identical product is priced cheaper on another marketplace, even if it is sold by a different seller, Price Leadership will delete the listing. Walmart considers the cost of the products, as well as shipping and other expenses. Lower Profit Margins Because of Walmart's EDLP guarantee, brands and sellers may need to lower their product pricing on Walmart's marketplace compared to Amazon.com or their own website. Although offering products at a lower price may improve sales volume, it is likely that profit margins will be reduced. You should also be aware that if the identical product is sold at a much higher price on another marketplace, Walmart will remove the item. 23 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Smaller Audience of Shoppers While selling on Walmart Marketplace can help brands and sellers reach a new audience, selling on Walmart.com alone is not optimal because the marketplace has less visitors than Amazon.com. Every month, 200 million unique visitors visit Amazon's marketplace. Despite the fact that Walmart has a larger physical footprint, Amazon has the most online customer traffic. Limited Fulfillment Services Previously, Walmart forced third-party merchants to store, fulfill, and ship their own merchandise. Customer’s service and refunds were also the responsibility of Walmart Marketplace vendors. Walmart Fulfillment Services, which takes care of fulfillment, shipping, customer service, and returns on behalf of eligible sellers, was launched in 2020. Brands and sellers who do not qualify for Walmart's fulfillment service will be on their own to manage these areas of their business. Potential Listing Issues Because Walmart operates on a first come, first-serve basis, brands and sellers may have difficulties in getting their products listed on the retailer's marketplace. When it comes to the Buy Box, the seller who initially lists a product is given priority over vendors who sell the same product. The only option to defeat the product's original seller is to offer a cheaper price, which will allow the seller to win the Buy Box. 24 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment IKEA In 2017, the business released IKEA Place, a free app that linked with their most recent product catalog. Users could construct an augmented reality to see how the furniture would look in their homes back then, and the app allowed them to determine their own unique style through a series of tests. IKEA was very aware of how quickly technology advances. They did not want to be left behind in an era when e-commerce is ushering in breakthroughs like AI. It was a fun and involved way for users to use the app, and it made buying furniture a less scary affair for those who liked to plan. Before even entering a business, they could double-check that the colors matched, and the proportions were correct. The goal was to simplify the purchasing procedure for customers while also encouraging them to interact with IKEA's catalog throughout the year. While it is tough to say how much of an influence the augmented app has on IKEA's bottom line, there are a few additional aspects to consider. The app was the second most popular augmented reality app created with Apple's ARKit, ahead of several gaming apps, indicating that many users are at least trying out the app's features. We will not know how effective the app was until IKEA reveals more concrete figures, but the sheer amount of excitement it generated cannot be overlooked. 25 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment IKEA before and after using e-commerce During the pandemic, the term "home" took on a whole new meaning. As schools and offices were shuttered due to lockdowns, more people were working and educating from home. Many consumers began to invest more in their personal spaces in order to make their new circumstances more comfortable, resulting in a surge in demand for home shops. While the increase in demand was positive for Ikea's sales, the transition to an online-only business presented challenges. Ikea's website and general online purchasing experience have been questioned by retail critics in the past. Even with the retailer's previous efforts prior to the pandemic, the transition to e-commerce was not an immediate success. In fact, Ikea's curbside pickup service was reportedly unavailable, customers had to wait more than a month for online orders in certain circumstances, and phone lines were reportedly backed up. Despite this, the shop has been able to increase sales and e-commerce in the last year. Ikea retail sales grew 6.3 percent year over year to 37.4 billion euros ($43.4 billion), according to Ingka Group. According to a corporate news release, the retailer's e-commerce share of sales climbed from 18 percent to 30 percent as a result of the retailer changing its locations to also act as fulfillment points, updating its website, and continuing to roll out the Ikea app. Inter Ikea Systems, the global Ikea franchisor and owner of the Ikea brand, said that Ikea retail sales across all 12 groups of its franchisees were 41.9 billion euros. 26 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Pros and Cons The shift in consumer behavior is one of the reasons why IKEA made the leap to e-commerce, albeit late (2016). Unlike in the past, when large retailers chose the consumer, today's consumers are better informed and capable of making their own product judgments. Furthermore, many clients nowadays, particularly millennials, prefer to make the majority of their purchases online. Pros of using IKEA using e-commerce IKEA joined e-commerce after realizing they were losing money to its competition and expanded their online company to 14 of their 28 consumer countries. IKEA had an immediate 30 percent increase in online sales, totaling $1.6 billion. Even though this was only a small portion of their total sales, it was nevertheless amazing. According to reports from 2016, the IKEA website received over 40 million visits per year in Australia alone. IKEA.com received 2.3 billion visits worldwide in 2017. IKEA launched IKEA Place, an augmented friendly mobile app for iPhone users, in Q3 of last year (2017). You can use the app to take a photo of a spot in your house or business where an IKEA item is needed. After taking the shot, you may browse and insert lifelike furniture images into the same image to have a better idea of how the furniture will fit in your preferred location. When you are satisfied with the image, go to the IKEA website and place an order for the same item. Despite arriving late to the e-commerce market, IKEA has managed to unseat competitors who have been in the game for a long time. Its success is due in large part to a strong marketing approach. Apart from supplying high-quality goods at reasonable costs, IKEA goes out of its way to guarantee that it engages with its consumers on a regular basis — perhaps as part of a consumer research strategy. Nonetheless, IKEA is a great example of how a worldwide corporation can use e-commerce to increase sales and consumer contact. Cons of using IKEA using e-commerce Ikea has always been on the front edge of technology, and 2017 is no exception. They are working on an Augmented Reality app that will allow people to check out virtual things in their own homes using the camera on their phone or tablet before purchasing them online. Unfortunately, this solution is out of reach for most businesses' marketing budgets. 27 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment The Ikea Catalogue App presently offers a 'put in your room' feature that allows you to select things and 'position' them in your room in real time using your phone's camera. There do not appear to be many things with which you may accomplish this, and the colors appear to be somewhat off when compared to the actual Ikea stuff. 28 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment The Home Depot The world's largest home-improvement shop, like other retailers, says it is actively expanding in the online channel and seeing it as a major growth opportunity. Home Depot has one of the top five largest eCommerce businesses in the United States. Home Depot generated $10 billion in eCommerce sales in 2019. Since beginning Internet sales in 2001, Home Depot has made its largest e-commerce investment in the last two years. Online, including mobile, will account for a significant portion of the company's $370 million in expected yearly IT spending over the next three to four years, according to the company. According to its own study, 40 percent of all home renovation initiatives start online. So far this year, 45 percent of the 9.5 million customers who visited the Home Depot online in any given week said their next step was to visit a store, equating to around 225 customers per location every day. The Home Depot before and after using e-commerce Home Depot said in 2017 that it would invest $11 billion in a multi-year strategy called One Home Depot to "further unleash a frictionless interconnected shopping experience allowing our consumers to seamlessly combine the digital and physical worlds," according to Craig Menear, 29 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment the company's CEO. This plan has included a $5 billion investment in Home Depot stores, in addition to improving eCommerce capabilities. After more than doubling its online offers to 210,000 in the last two years, the company is adding 3,000 to 5,000 products per week. The average number of units in each store is 30,000. To encourage larger-ticket purchases, customers can now book consultations with kitchen designers online and communicate modifications directly with them, cutting down on a process that could previously take up to 90 days and 14 store visits. 30 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Pros and Cons Home Depot Inc.'s digital commerce is booming, and CEO and president Craig Menear credits the retailer's omnichannel efforts—or what he refers to as "Home Depot's integrated retail strategy"—for most of it. Home Depot.com continues to be a growth engine for the company's total business, driving increasing traffic online and additional footsteps to the stores. 50 percent of online orders are picked up at a Home Depot store. Pros of using IKEA using e-commerce The Home Depot is also experimenting with augmented reality to make ecommerce-inaccessible products more accessible to online shoppers. Customers with smartphones can utilize the cameras on their devices to overlay products in their homes. For instance, if a consumer wants to view how a new countertop might look in their own kitchen, they can do so. Customers can also snap images of their walls and then experiment with several hues before committing to a paint pot. The Home Depot is clearly committed to befriending their ecommerce unfriendly items, whether it's by making it easier for consumers - both expert and amateur - to get the proper assistance after or before a purchase, or by leveraging digital technologies to inform buying decisions. Cons of using IKEA using e-commerce The problem for The Home Depot was that many of their products were "ecommerce unfriendly." Purchasing building materials or kitchen and bathroom suites entails more than just making the buy and receiving the goods. Many of these goods will require consumer assistance or recommendations for installation and/or use. This, of course, poses issues with online ordering. The answer The Home Depot came up with for the issue of ecommerce unfriendly products was a robust omnichannel strategy. If a customer knows exactly what they want and orders it online, they can arrange to pick it up in-store and get their queries answered. In contrast, if they require assistance prior to making a purchase, they can visit their local Home Depot and speak with a member of the staff. If they are ready to order, the staff member can do so on their behalf using the smartphones that all Home Depot employees carry. 31 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment "New square footage used to be our economic motor," explains Carol Tome, CFO. "Our team, on the other hand, has moved away from that paradigm by combining digital and in-store purchasing, with a special focus on products that aren't well-suited to ecommerce. Customers who want in-person help can now order online and pick up at a store or select items in-store and buy online from sales colleagues with smartphones. We needed to put money into providing the experience that our clients desired." 32 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Communication technology All equipment and programs used to process and communicate information are referred to as communications technology, often known as information technology. Communication technology refers to any digital technology that helps people, businesses, and organizations use information. It applies to all electronic products that deal with digital information. As a result, communication technology is concerned with the storage, retrieval, and transmission of digital data. Communication technology helps organization spread information easily. Without communication technology, organization and their customers cannot engage or interact with each other effectively and efficiently. Importance of communication technology in an organization Organization perspective On both an individual and organizational level, modern technology is omnipresent and pervasive. In enterprises of all sizes, information communication technology in the form of cellphones, laptops, tablets, and personal computers is widely used. These and other gadgets, as well as the platforms that are created on top of them, are critical to businesses. Communication technology allows a company to be more efficient, effective, and responsive to the needs of its customers. Design, manufacturing, R&D, distribution, sales, and feedback are all areas where communication technology can help. There are a variety of uses of communication technology that improve business performance: Better Service Delivery to Clients A focus on the customer and the direction of most of the company's processes and departments toward customer satisfaction is central to many modern enterprises. In reality, several of today's most well-known brands have risen to their current size by providing exceptional value to their clients and providing excellent customer service. Many companies have spent a significant amount of money training their front-line employees in the art and science of customer service. The issue is that they do not place as much emphasis on improving customer service efficiency and delivery as they should. 33 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Improving Customer Service Delivery There is a gap in customer experience improvement that exists across the board, in both the private and public sectors. It is feasible to improve the customer experience, and the most efficient method to do it is through the application of technology in the workplace. A list of improvements for how to improve customer service delivery can be prepared depending on the business in question and the sorts of services being supplied to clients. Despite the fact that each organization is unique, there are several fundamental elements that are the cornerstones of customer service delivery in almost any firm, regardless of industry. These elements include providing some services online and incorporating an e-commerce component into the business to provide clients with a better experience with enhanced convenience and efficiency when buying goods or services from a company. Responding to Change This is true for all types of businesses: the importance of change cannot be overstated. Whether your company is enormous and sophisticated or tiny and agile, if it sells consumer items or services, if it serves customers or other businesses, if it operates in a static or dynamic industry, underestimating the power of change is a dangerous error. It would be a major mistake to underestimate the potential of information communication technology in assisting you in adapting to such shift. For starters, data processing can benefit from information communication technologies. You are likely to have a lot of data from a variety of sources, such as industry statistics, customer feedback, inventory management, web analytics, and sales. Analyzing the Data You would be able to acquire profound insights into the performance of your firm if you could take all of that data and properly evaluate it. You would also be able to spot new business and industry difficulties as they arise. This would allow you to identify these concerns early on and include them into your organization's strategic planning. 34 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Once strategic decisions have been taken and are in the implementation stage, communication technologies can be a huge help. The use of information and communication technologies can make it easier to put those decisions into action. It is not only cost-effective because of its reach, but it also allows for novel implementation strategies to be implemented. If the organization has its own team of software developers, some of these measures can even be developed in-house. Rising Above Competition Complacency is a condition that develops over time in every mature sector. When companies reach a point of equilibrium in terms of market share and product differentiation, they become complacent and stop trying to differentiate themselves from the competition. Some firms are content with their current situation. However, if a company actually wants to stand out from the crowd – whether it is to increase market share and improve its brand, or to become the preferred service provider or vendor of goods – it can leverage communication technology to help it do so. It can accomplish this in a variety of ways. Streamlining Internal Processes To begin, the company can employ communication technology to streamline, automate, and optimize its internal operations, eliminating bureaucracy, human error, delays, and other factors that diminish the efficiency of such procedures. Communication technology can also be used to make internal and external corporate activities more efficient, lowering costs and enhancing the bottom line. The company can use communication technology to devise and implement new ways to enhance the value of the product or service it provides to customers. The company will be able to improve the consumer's experience and turn them into a repeat customer as a result. Information Communication Technology is an All-Around Tool Communication technology is more than a tool for tightening a few nuts and bolts here and there in your company. It symbolizes a complete paradigm shift in the way you do business, allowing your company to re-frame its perceptions of what is possible. The level of service provided to customers rises dramatically as the organization's standards rise. As a value addition, the company might offer additional services to clients. This is a significant benefit for small and 35 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment medium businesses, as many of them have limited resources and should seize any opportunity to add value in small ways. Customer perspective E-commerce is a constantly developing and evolving industry. Customers are always looking for methods to connect with brands in a more personal way, whether it's through social media, chatbots, or other means. You can connect with your consumers in a variety of ways – by phone, email, social media, or face-to-face – each with its own set of benefits and drawbacks. However, there are issues regarding how we should communicate with our customers, as it's simpler than ever to take offense these days. Furthermore, customers are significantly more inclined to trust a company that makes it easy to reach employees. The importance of communication technology in terms of customer perspectives: Transparency Transparency with a client aid in the development of trust. Customers may be interested in learning more about the manufacturing process so that they can shop ethically and support companies they respect. Clients may feel more comfortable paying for your products or services if they have a better understanding of how your firm functions and its bottom line. Transparency also entails being clear about how you can meet customer needs and any pricing adjustments, regulatory changes, or business developments that may have an impact on the consumer. By having communication technology, it allows customers to ask the organization anytime and anywhere as they pleased. Flexibility Having adaptive communication options might help to strengthen the client-business relationship. When things change, flexibility allows both sides to keep communicating. If a company's phone lines fall down, for example, flexibility allows them to keep in touch with customers by putting up online chat rooms or conference calls. 36 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Businesses might also demonstrate flexibility by providing easily accessible communication channels. If a large section of a company's customer base speaks a language other than the company's principal operating language, for example, hiring a dedicated translator demonstrates that the company values its customers and is committed to maintaining solid ties. By doing this it will help the customer to develop loyalty and trust to the organization. Stay updated Customers can now communicate with you in a whole new way thanks to social media. You can use your accounts to market your items and brand on one level. However, you can utilize your accounts to communicate with others one-on-one. Customers can communicate with your representatives directly on Facebook. You can utilize dedicated service hashtags on Twitter to allow clients to tweet their problems and receive immediate responses. If you want to take it a step further, you can keep track of every mention your company gets, highlight the ones that contain complaints or queries, and then respond with an offer to assist. You may now be more responsive than ever before thanks to social media. By using communication technology, customer will be able to keep track and stay updated 37 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Example of communication technology Email Email is a quick and easy way to communicate in business, and it is difficult to picture a company that does not use it for the majority of internal and external contacts. Email communication has various advantages, not the least of which is its speed and reliability. However, along with its benefits, email has a number of drawbacks that can make it difficult to send information. Advantages of email Fast Client Communication When you need to send a message to a client or business associate who is thousands of miles away, email is one of the most efficient methods. You can send attachments with an email that contain critical documents or even a presentation to explain your message, which gives email an advantage over the telephone in terms of communication speed. In general, phone calls take longer since you have to get through to the appropriate person and catch them when they are available to speak. In contrast, an email can be sent fast and will be there for them when they are ready to receive it. Availability and Portability Because to the increased usage of email, businesspeople now receive hundreds of emails each day. Thousands of email messages, on the other hand, can be saved in folders on your computer or a handheld communication device like a cell phone and retrieved when needed. You do not have to retain file folders full of paperwork because of the convenience of email. It also makes crucial correspondence portable without the need to tote around bulky file folders. Advertisements Emails can also be used as a marketing technique for products. For instance, a business can market its items to a huge number of clients in a short amount of time. This type of marketing is also thought to be less expensive. 38 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment User Friendliness Email is also simple to use. People with only basic computer abilities will be able to send and receive email. Only the recipient's name, subject, and message must be mentioned by the sender. And then hit the send button. Emails can also be used to quickly view contacts and information. Reduces Shipping and Mailing Costs Email is free, aside from the cost of your internet connection. One of the advantages of email communication is that you can send as many messages, files, videos, documents, and presentations as you like for free. It greatly decreases your company's shipping and postage costs, as well as the time – and the cost of that time – you or a coworker spends packaging, addressing, and mailing documents. Disadvantages of email Vulnerability to Loss Accessing and destroying all of your essential printed documents would necessitate a manual effort on the part of someone. However, a simple hard-drive disaster might wipe out all of your emails and vital data. If you keep your email data on another server, you risk losing it if that site goes down or goes out of business. Make a backup of critical emails that you wish to save even if only for a short time, such as copying them onto a flash drive on a regular basis. Accessible to Others You are the only one who receives a business letter when it is handed to you. Never think of your emails as private. Because email is delivered through networks, it is possible that others will obtain access to it or will mistakenly receive it. An email can be intercepted by a hacker or sent to the wrong email address, ending up in the inbox of someone else. As a result, be cautious about the information you transmit in an email. If you have sensitive information that you do not want others to see, email might not be the ideal option. When you use email, hackers and even unwary receivers have easy access to your critical information and messages. 39 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Spamming If you do not utilize a firewall or anti-spam software, your mailbox may be inundated with spam messages. Spam emails can be inconvenient because you have to delete them on a regular basis. Even some spam filters have not been able to stop them. One of the most common types of spam is email spoofing. Virus Attacks One of the most common ways for viruses to spread is through email. Viruses, in particular, can infect computers via attachments and do catastrophic damage to the system. Email providers are frequently examined for these malwares. However, it is preferable for the user to perform a manual scan and be cautious of emails from unfamiliar senders. Difficult to Interpret Emotions One disadvantage of email is that, because it is so quick, people tend to treat it as if it were a conversation. They start using slang phrases and try to communicate through email. Due to the fact that email recipients are unable to see each other, the emails lack any voice intonation or emotion that could aid in appropriate interpretation. This can and does lead to misinterpretations of the email's emotion, resulting in hurt feelings, anger, resentment, and a variety of other emotions. It is a good idea to reread your emails before sending them, looking for any wording that could be interpreted negatively. 40 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Live chat Customers can contact customer service agents in real time using live chat. Rather than speaking with a representative over the phone, website visitors can connect with agents in real time via a chat box within their browser. Customers can also use live chat to communicate with customer service representatives without having to call them directly. Users can send a message in a chat box instead of waiting for an email response, and then wait for a live chat response from an agent. Advantages of Live chat Expanding Market Reach The internet allows you to reach far beyond the physical boundaries of your office. When several visitors drive by your physical office, you may not receive as much traffic, but when the same scenario occurs on your website, you have the opportunity to convert your visitor into a customer by giving them with quick and easy access, which will make them feel more at ease. One of the advantages of live chat support is that you may assist customers from all around the world. Instant Gratification People have come to anticipate rapid solutions to their problems as a result of sophisticated search engines and social media platforms. Another advantage of live chat support is that it allows you to deliver immediate communication to your visitors, satisfying their conditioned desire for instant gratification. Visitors will always appreciate timely attention and assistance, even if you are unable to fix their difficulties. Alleviating Stress from Other Communication Mediums Customers who do not want to contact or email about minor problems or queries will benefit from live chat options, especially if they can obtain a quick and straightforward response. You are gaining a huge benefit of live chat assistance when clients can minimize stress from other communication mediums like phone and emails. This priority-based categorization of queries will limit the number of insignificant calls or emails you receive. 41 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Employees Can Multitask Better At any one time, a single support employee can only be on one phone call. If the call is long, this can cause substantial delays. In support chat, on the other hand, a staff member can handle two or three chats at once. This helps them to serve more people in less time, allowing them to work more efficiently. Furthermore, if someone does not know the answer to a question, it is simple to seek assistance from a colleague. It is more seamless to do so rather than putting the customer on hold while they search for an answer. Simplified Communication Calls might bring up a slew of concerns that can make for a frustrating experience. On the phone, if either person has an accent or does not speak English fluently, they may be difficult to understand. Phone calls can also be problematic if the caller is on a bad connection, resulting in poor quality. You will not have to worry about these concerns if you use chat. Text communication is unaffected by accents, and sending messages uses very little network bandwidth. Furthermore, having everything displayed in text allows both parties to quickly refer back to something said earlier. You can also quickly send links and difficult-to-speak stuff into the chat in many circumstances. Disadvantages of Live chat Communication Difficulties You may not be able to portray your tone through live chat unless emoticons are utilized (which is not professional), and you risk your remarks being misread. As a result, it is critical to choose your words carefully to avoid miscommunication. Older People May Not Be Comfortable with It Unlike most visitors, the older age may not know how to utilize the live chat feature or may not feel comfortable utilizing it, preferring instead to speak on the phone. 42 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Delayed Responses Could Mean a Lost Customer It is critical that your representative responds to all messages as soon as possible. If this is not done, the entire purpose of the live chat feature is lost, and visitors may become agitated as a result of delayed responses. Slow responses should not be used to test your customer's patience. Misaligned Time Zones As a business, you must understand that internet visitors will not necessarily contact you between the hours of 9 a.m. and 5 p.m. in your time zone. Because they may be in completely different time zones, you must ensure that live chat duty is divided in such a way that it covers all hours in order to give 24-hour live chat support to whoever visits. Not Everyone Likes or Understands It Live chat should not be your lone or major form of customer service. Some people dislike the impersonal pre-recorded messages that show before you connect with a live person. They may even find the experience of texting with a firm off-putting (especially if you use scripted messages). People who are not computer knowledgeable may be unaware that the option exists, let alone how to use it. Furthermore, some folks may not have regular internet access. Because of this, it's critical to provide alternative forms of assistance. 43 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Phone calls The telephone is without a doubt the most widespread and significant communication device, but it also has some pros and cons. The telephone is the most widely used oral communication device. It brings individuals together regardless of their geographical location. It helps us communicate in any movement and from any location by breaking the tone. Graham Bell came up with the idea in 1876. The telephone in previous ages is very different from the telephone in the present era. The modern telephone has evolved into the cell phone, which is portable and may be used anywhere on the world where a mobile operator's network is available. Advantages of phone calls Telephone communication is beneficial because it allows for rapid personal response, is interactive, facilitates long-distance communication, and may be used to transmit confidential information. Telemarketing and market research are two ways that telephone communication helps firms. Interactive Communication Through audio conferencing sessions, telephone communication can connect many personnel in a business. These conference calls can be combined with video conferencing to view presentations, ask questions over the Internet, and even debate concerns with other participants. They become both cost-effective and timesaving as a result of eliminating the need for travel. Long-Distance Communication Telephone communication is more successful across vast distances than letters. It enables for quick responses and information clarity. Furthermore, compared to physical travel, long-distance telephone communication is less expensive. 44 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Effective Personalized Communication Telephone calls, as opposed to emails and text messages, which are essentially words that the recipient must interpret, provide a personal touch and allow for the expression of emotions through tone of voice. Furthermore, telephones make it simple for callers to leave extensive and clear messages. Telephones are also useful in emergency situations and natural disasters. Individuals can provide a clear individualized account of what is going on to the police and other stakeholders in this way. Confidential Personal phone calls are the ideal way to handle some communications, especially those requiring sensitive or personal information. This type of two-way communication prevents information misinterpretation. Furthermore, text messages and emails are treated as legal records and can be retrieved as evidence even after they have been deleted. Furthermore, telephone conversations ensure that only the intended recipient receives the message. This is due to the fact that the individual delivering the message is confident that the recipient is the intended recipient. Messages sent via email and text, on the other hand, may be read by unwanted recipients. Aid to Businesses Telephone calls can be used to promote new items and reach out to new consumers. This customized marketing technique allows the company to get firsthand information about the items and the market as a whole. As a result, such input identifies areas for improvement, which is critical in company policymaking. The service sectors, such as hotels, restaurants, and food delivery, rely heavily on telephones. This is because telephones allow potential clients to make reservations or place orders over the phone. Telephones are a vital link between such businesses and their target markets in this regard. 45 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Disadvantages of phone calls Smartphones do not have directories When someone calls your firm, the first number they dial usually connects them directly to the person they are looking for. Whether it is a new client who does not have everyone's direct phone numbers or a potential lead looking for the correct salesperson, not having a directory reduces their chances of reaching the right person. One of the most significant disadvantages of cellphones is the lack of a directory to route incoming callers when only one mobile number is utilized for the main corporate line. A caller cannot pick and choose who they want to speak to without a directory, and they cannot even receive the correct number automatically without one. This means they will waste time attempting to find the correct individual to speak with. Smartphones do not allow you to transfer calls among the team or from an individual to a conference room Some clients, who relied solely on smartphones, had a major annoyance in that they could not transfer calls using their phones. How many times have you received a call that a coworker could handle better? If it is a cellphone call, you will have to ask the caller to hang up and wait for your teammate to return the call. This constant swapping of cellphones degrades the effectiveness of your system and makes the caller eagerly await a response from the appropriate person. Clients will also frequently call the number that is most convenient when dialing in for a meeting. If that number is your primary line, and someone who is not scheduled to be on the conference call is connected to it, they will have to either take their smartphone to the conference room or cancel the connection and wait for someone else to call back. That does not reflect favorably on the conference call's professionalism. 46 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Smartphones do not allow corporate control of voicemail Voicemail has come a long way since the devices that used to sit by your phones. You can now carry voicemail in your pocket thanks to smartphones. However, for a corporation, not being able to monitor incoming voicemail messages might cause confusion and information loss. Your business can keep and manage voicemail messages if you have corporate control of your voicemail. This feature allows you to share voicemail messages with coworkers and ensure that they are not lost in the shuffle. When using a cellphone, you must rely on the individual receiving the message to routinely check their voicemail and then accurately communicate the information to anyone else who may require it. Chaos and miscommunication are frequently caused by smartphone voicemail, according to client feedback. Smartphones have batteries that need to be charged We have all done it, forgotten to charge our phone the night before or left our charger at home, and then your phone is only 20 percent charged by lunchtime. When a company relies primarily on cellphones for business communication, the demand on everyone in the company to keep their device charged increases. Managing a single person, let alone a team, may be difficult. Smartphones do not have extensions and team members do not always want every client to have access to them and their cell 24/7 People today are accustomed to being connected at all times because to technological advancements. Healthy work environments, on the other hand, allow people to disconnect from work during their off hours, according to studies. It is challenging enough to move away from work with instant email notifications, but when your clients can access your staff via cellphones, it's practically impossible. Nothing beats getting a call from a client at 6 a.m. to start your day, or even better, many calls from a client who believes in working late into the evening. Cell phones, on the other hand, are not the most efficient, or even the most convenient, solution for your company's telecommunications, as the five downsides above illustrate. 47 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment A managed services phone solution may be a better option for you even if you are a small business with 1-5 employees. SMS Unlike iMessage or other web-based messaging systems, SMS refers to normal text messages that are sent using a cellular signal rather than an internet connection. Because SMS messages are limited to 160 characters, larger messages are usually divided up into pieces. Text message marketing reduces costs SMS can be studied in great detail because it is digital data. Assuming you have efficiently segmented your communications, such as service texts, promotion texts, news-related SMS, and so on. Then all of your customer's SMS messages can be: Stored Tracked Analyzed Measured This level of analytical detail is also quite quick. Allows your marketing department to identify what's working and capitalize on successes more readily, fine-tuning messaging until it is optimized for maximum sales and ROI. When compared to other marketing tactics such as billboards, TV advertisements, or leaflet drops, this type of simple media saves time and allows for a clearer assessment of results/ROI. Global marketing Text messages are intended for everyone with a modern mobile device and access to a cell phone signal. As a result, you may instantly contact millions of individuals, anytime, anywhere. 48 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment With up to 7 billion mobile phones in use on a daily basis, SMS is one of the few technologies that is uniformly synchronized across all worldwide mobile phone operators. Text messaging allows you to communicate with people all around the world. Personal SMS is a very personal communication because it is sent directly to each individual consumer. People respond to mobile phones with more intimate immediacy since they are very personal technologies. You may make it even better by sending it to each recipient as a personalized message. This will undoubtedly pique their interest. Because potential clients are significantly more likely to give you their email address than their phone number, you should have an email list as well. However, this highlights how personal most people's phone numbers are. Customers are more likely to respond to your messaging once you have a phone number because they invited you in. Simple and easy SMS has become a widely used communication method due to its ease and reach. A message can be opened, read, and texted by anyone. Furthermore, because of the length restriction (160 characters), messages are brief, straightforward, and to the point. Reliable A spam filter, let alone a spam box, is not usually included with mobile phones. SMS communications, which are mostly sent through mobile phone, are generally safer than email, which might contain a variety of nefarious attachments. Furthermore, delivery takes place within 48 hours to account for phones that are turned off or out of range of a signal. So, for the most part, you are aware that SMS distribution is a dependable method of inboxing your customers. In the worst-case scenario, your phone number could be blocked. But that depends on your message and your target audience. 49 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Disadvantages of SMS Message length limit The length of a text message is limited to 160 characters. You will have to pay for the extra messages required to transmit the extra characters if you want them to be longer. Customers also demand short, pleasant texts. That is how the media works. If your marketing message cannot be condensed within 160 characters, it's usually better suited as an email or social media post. Smaller lists While creating a new email account is straightforward (and inexpensive), purchasing a new phone number is not. One of the numerous reasons why people are increasingly guarded about their cellphone contact information is because of this. Because customers expect businesses to communicate with them via SMS, do not expect your SMS list to be as vast as your email list. Less frequency While 56 percent of consumers receive between 25 and 100 emails every day, the same cannot be said for texts, with the average user sending only 15 messages per day. You will not be able to send SMS messages as frequently as you can send emails or post on Instagram. SMS is personalized SMS is a personal way of communication, particularly in some cultures. According to the 2020 Global Messaging Engagement Report from Twilio SendGrid, while recipients in the United States and France generally accept text messages from businesses, consumers in Germany and the United Kingdom "see promotional SMS messages as intrusive and an invasion of their personal space." Extra channel to manage Text message marketing is not something you can just do for the sake of it. It is a channel you will need to manage with care and foresight. You must be consistent, sensitive, and strategic in your approach. It will take time and resources to handle another channel. 50 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Social media Websites and applications that emphasize on communication, community-based input, engagement, content-sharing, and collaboration are referred to as social media. People utilize social media to keep in touch with friends, family, and other members of their communities. Businesses utilize social media to market and promote their products, as well as to keep track of client complaints. Social components, such as comment fields for users, are included on business-to-consumer websites. Various tools, such as brand perception and customer insight, assist organizations in tracking, measuring, and analyzing the attention they receive through social media. Advantages of social media You reach large audiences Social media platforms are used by millions of individuals. It is a fantastic way for your company to reach out to a big number of people who are interested in your products or services. These are the percentages of U.S. adults who use social media sites online or on mobile, according to Pew Research Center: YouTube: 73% Facebook: 68% Instagram: 35% Pinterest: 29% Snapchat: 27% LinkedIn: 25% Twitter: 24% Many of these sites are popular with adults, providing excellent opportunity for your company to reach out to potential customers. You have a lot of options for reaching out to leads and engaging with them on these various platforms. Social media's capacity to reach enormous audiences is a 51 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment big benefit. It allows your company to find more leads who are interested in your products or services. You have a direct connection with your audience One of the few marketing tactics that allows you to communicate directly with your audience is social media. Because they choose to follow your social media account, you know who is interested in your business. This social media advantage benefits your company in a variety of ways: You gain a better understanding of them: As you gain a better understanding of your audience, you will be able to provide them with more valuable material. You customize the material to their preferences, which increases engagement on your page and with your company. You offer superior customer service: You can solve problems faster if you have a direct relationship with your audience. You may speak with them one-on-one, address their concerns, and improve your brand's image in the process. You learn a great deal about your customers: The direct connection with your audience allows you to learn more about them. You can see who comments on your posts and how they respond. It enables you to tweak your plan to make it more appealing to your audience. You can see how your audience perceives your company: It is always beneficial to know how others perceive your company. You know what your audience thinks of your organization when you use social media marketing. It is a significant benefit of social media marketing since you can capitalize on features of your brand that people enjoy and correct components that they do not. Making a direct connection with your target audience is a fantastic method to boost the effectiveness of your whole marketing effort. You will gain knowledge from your followers and be able to better tailor your social media approach to match their demands as a result. 52 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment You can create organic content The opportunity to upload organic content for free on social media is a huge advantage for businesses. This provides your firm with several possibilities to connect with quality prospects at no expense. One of the reasons why businesses want to use these platforms is because of this. You can also engage your audience by posting as much stuff as you desire. Depending on the social media network, you can use these platforms to share images, videos, and other content. It is a fantastic approach to get your brand in front of potential customers and help them become more familiar with it. You have access to paid advertising services Paid adverts are an alternative if you wish to go beyond organic publishing. Each social media platform has its own paid advertising option. Depending on your platform, you'll have different options for social media advertising. Paid adverts allow your company to connect with prospective leads who have not yet discovered your company. You may customize your adverts to show in the feeds of individuals who are looking for your products and services on social media networks. This is a fantastic opportunity for your company to broaden its reach and generate new leads. You assist more interested leads in finding your business, resulting in new followers and conversions for your company. You build your brand The potential to establish your brand is one of the benefits of social media marketing. You expose your brand to interested leads when you connect with them. The option to post free organic content allows you to create brand identification with your audience over time. This helps to increase brand loyalty. People will grow more familiar with your brand the more they are exposed to it. Because individuals like to buy from brands, they are familiar with, brand familiarity leads to greater conversions down the road. Because social media allows you to share, it also aids in the development of your brand. On these platforms, you can share, retweet, and re-pin material. This implies that your followers can 53 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment share your material with their friends and family, allowing your company to reach a wider audience. It is a fantastic technique for you to generate new leads. You can get in touch with leads you would not have gotten in touch with otherwise. It aids in the growth of your following and the generation of more leads. You can evaluate your performance The opportunity to evaluate your performance is the final benefit of social media marketing. You want to know how well a marketing campaign is performing whenever you run one. You can easily track your campaign on social media networks to discover if it is yielding valuable results. You can control how many people see your postings, comment on them, like them, share them, and so on. You can also check metrics for an advertising campaign if you conduct one. Impressions, clicks, and conversions are among the analytics you will observe. You can improve and improve your social media strategy's performance if you can evaluate its performance. Disadvantages of social media You can receive negative feedback People use social media to share content they enjoy, as well as to share negative experiences. If someone has had a bad experience with your company, it provides them with the option to tell others about it. This negative feedback manifests itself in a variety of ways. Someone can submit a poor review on your page and share their bad experience on social media networks like Facebook. When someone comes to check out your place of business, they will read the reviews and notice the bad remarks. Users can tag a corporation in their tweets on social media sites like Twitter and report their unfavorable experience. That bad encounter can be retweeted and shared around the internet. 54 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Complaining and bad criticism are common on social media platforms. People utilize their accounts to explain their bad experiences to others. Many people believe it is their societal responsibility to share their experience in order to avoid others from having the same. Having a lot of negative feedback will affect your marketing efforts in the future. People trust people to provide them with information about your firm, especially if it is the first time they have heard of it. Negative feedback on social media might make it difficult for your company to get leads. You must spend a lot of time on your campaigns Social media marketing is not a one-and-done approach. On these platforms, you must continually develop new material, post content, and communicate with your audience. One of the major disadvantages of social media is that it consumes a lot of time for businesses. It is difficult to maintain a social media marketing strategy if you have a tiny firm, a small marketing department, or limited resources. You must schedule time to post material, monitor that content, respond to comments, and assess the impact of your content. It might be a daunting task if you lack the necessary resources. Your campaigns will suffer if you do not do enough with your social networks since you do not have enough time, people, or programs to help you run your marketing plan. You have to wait to see results When businesses invest in marketing tactics, they expect to see returns right away. You want to know that your strategies are effective and that your time commitment was worthwhile. You will not get fast results from social media marketing. The success of social media marketing is determined by the campaign's overall success. The success of your campaign is not determined by one piece of content. To assess the true success of your campaign, you must post many pieces of content over a period of time. The fact that you have to wait for results is a disadvantage of social networking. Before you can change your campaign, you must be patient and wait a few weeks to observe results. 55 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Social Media Is Involving If you do not communicate with your followers on social media, you will lose; if you do not watch people's actions, you will not provide value to them; and all of this necessitates being active on the channels where your prospects spend the majority of their time. Furthermore, social media is constantly evolving, necessitating constant updating. Also, social media users want new content from businesses, which can become tedious for marketers over time. Security And Privacy Concerns Millions of data were leaked on Facebook just a few days ago. This is especially dangerous since, while using social media to promote your business, you must disclose both personal and public information, which, if exposed, puts your company at risk. Feedback forum A feedback forum, at its most basic level, is a place where people can communicate and collaborate to improve products, processes, companies, and markets. Advantages of feedback forum Market research Forums are a wonderful method to communicate directly with your current and potential consumers, and they allow you to discover more about what they want and need, what they are interested in, and what they are most curious about. As a result, they are an excellent research tool. Following the discussions will help familiarize you with the type of language they use, allowing you to communicate with them in a way that they comprehend. Broad keywords Another advantage of forums is that you can find terms that you would not have found otherwise. Every visitor to your internet forum produces a post in their own unique style of 56 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment writing, which includes keywords that others would look for. Forum posts consist out of natural language, and it is one of the best ways to create new content. Free content The fact that the content on forums is free is one of the most compelling reasons to use them. While some businesses like to start debates with a couple of postings, and while there are charges associated with running a forum, the material that is submitted is completely free. Adding a large forum to your website means adding hundreds of pages. Sure, some of those pages will be low-quality, but as SEO specialists at GWM point out, there will be a significant number of them that include the type of material that Google values. The conclusion is that forums are highly ranked. Visitor retention The forum on your website attracts new visitors, clients, and prospects and provides them a cause to return, especially if they are looking for a solution to a problem. Of course, every website owner wants people to return to their site, so creating a forum may be a great way to engage with visitors and encourage them to return and use your site on a regular basis. Disadvantages of feedback forum 1. Kick-starting the forums Every forum's start might be quite difficult. At beginning, attracting visitors can be tough. You start with an empty forum, which is unlikely to entice anyone to participate. Your visitors should be able to investigate and debate the information. This essentially implies that you must develop the initial forum content yourself, which can be a lengthy process. 2. The fact of the matter is that moderation is a hard and time-consuming process that you must deal with if you run a forum. The truth is that a lot of people will try to spam your forums and use them to promote themselves. A number of other people will make offensive and angry comments that do not reflect well on your company. You can engage a full-time moderator to handle this, but the truth is that it will cost you money in the long run. 57 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment 3. You want to use any type of material you create to increase your conversions. The problem with forums is that they are not designed to do this, and if you get a lot of low-quality posts, they may actually put off potential clients. You must remember that every piece of material on your website represents your firm, which means that even if your forum participants are unrelated to your company, they represent your company to new visitors. While forums are great for creating relationships with your visitors, they are not as effective as other sorts of content when it comes to conversion. 4. Keeping objectivity It is sometimes difficult to maintain objectivity when moderating a forum. People will raise contentious questions, and even if they know what kind of answer they want, others will dramatize the discussion and create roadblocks, making it difficult to maintain neutrality. Comments A comment is a spoken or written statement that expresses an opinion about someone or something Advantages of Comments Stimulated the decision to buy One of the most significant advantages of online reviews is that customers who visit an online business are more motivated to complete their purchase. How? encouraged by positive feedback from other customers who have already made a purchase decision Increase confidence in new customers Customers prefer to rely more on ecommerce if a product has good ratings or can simply be reviewed; consequently, reviews boost the confidence of new customers, which is necessary to lower rebound rates or shopping cart abandonment. 58 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Helps build loyalty for existing customers It is not easy to develop a strong customer community around an online store. However, assisting these customers in interacting with the online store will help to establish loyalty, repeat purchases will increase trust, and we will have higher web exposure, as described in the next point. Improvement in product or services Comments can provide you with a plethora of suggestions for how to improve your product's capabilities. Customers occasionally remark specific features of the product or services, as well as what improvements they would want to see. This can aid in the development of better products and improved versions of the product. This is more easily adopted in service-oriented firms. You have the ability to improve services in the way that customers demand. The most effective way to boost a company's growth is to improve it. Improvements can sometimes be even greater than what buyers expect. This is how you make your company successful. It also enhances your company's reputation among those who have yet to use your items. Better customer experience Customer satisfaction is determined by how customers interact with the firm and its goods. It is critical to look after customers throughout their journey, not just after they have made a purchase. Customers will have a better experience with new and improved items. Customer happiness may be tracked through feedback questionnaires, which helps to improve the customer experience. Disadvantages of Comments 1. Increases customer expectations and dissatisfaction Customers expect the company to respond to their criticisms when they make comments. If there is a defect in the goods, the consumer informs the seller in the hopes that it will be fixed the next time. However, it is not always possible for a company to meet such a large number of requests from so many customers. As a result, the company fails to correct its errors. 59 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment As a result, the consumer feels disappointed when he utilizes the product or service again. This leads to a slew of negative feedback later on. It is detrimental to the company's image. The users' high expectations become an impediment to the company's marketing and sales efforts. 2. Trolls are social media users that post comments with the sole purpose of inciting debate or stirring up controversy. They frequently engage in cyberbullying to provoke other social media users for their own amusement. This type of behavior is not only immature, but it can also deter other followers with positive remarks from engaging on the page. 3. When a social media follower makes a negative comment on a page, it can affect other customers negatively. After reading a critical comment from another customer, a potential customer who was on the verge of purchasing a product or signing up for a service may reconsider. This negative comment can be misleading for both the company and the social media followers. 4. save time by avoiding moderating Putting together a successful social media marketing campaign can take a long time. Whether the owner is doing it alone or has a social media team, sorting through comments to erase false statements or spam is a chore that the owner or employees may spend time doing. If the company have large following this job can be extensive, it is important to delete the false comments before anyone sees them, it is part of protecting the company’s image. 60 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Database technology When you hear the terms "cloud database" or "database-backed" site, you are talking about a website that uses a database. A database's primary purpose is to digitally store information that can be conveniently collected, accessed, and transmitted at a later date. Information such as transactional or systems-oriented data can be structured and tracked using this system, depending on the parameters. This also allows companies to examine and track data about products, sales, and customers that have been entered into the database. With the ever-expanding business, however, there is one technology that runs the backend of every successful e-commerce site: a database. With the massive amount of data being exchanged on a daily basis, companies must consider database best practices. Businesses can fully exploit an agile system to assist store, organize, and organize data for an e-commerce site by guaranteeing proper procedures. The Role of Database A database management system (DBMS) is essential for data production and management. It is impossible to run and maintain data properly without a database management system. A database management system (DBMS) acts as a bridge between the user and the database, allowing users to access files stored in the database. It gives the end user a unified, integrated picture of the data and translates all applications into sophisticated actions that satisfy those needs. Users and application programs, on the other hand, are unaware of most of the database's inherent intricacy. DBMSs play a significant role in information systems, from allowing various applications or users to share data in a database to providing users with a single all-encompassing data repository. Following are some of the things a DBMS enables in information systems: Better Data Access Within the Company Users inside a corporation can access, change, and delete data in a database or information system using a database management system (DBMS). When the company's information systems are integrated with the relational DBMS, users have easy access to this information. The adding of structure to vast amounts of shop data is one of the most significant advantages of using a database for e-commerce. No matter how big or small your online store is, you will need 61 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment an infrastructure to make sense of all the data and give meaningful insights. The e-commerce program can access the data more effectively when it is structured. Attracts an Audience E-commerce companies can use a database system to pinpoint possible clients based on gathered data. Customer data contained in the database can be utilized by marketing teams to develop targeted lists that will be used to direct marketing activities. The more data a marketing organization has, the better it will be able to identify customers and adapt communications to them. Not only will this strategy assist in customer retention, but it will also assist in the acquisition of new customers. Improved Data Security The greater the number of people who have access to the data, the greater the risk of a data security breach. In general, businesses devote a significant amount of time, effort, and money to ensuring that their data is properly utilized. However, this does not always result in the expected results. Organizations can improve overall data security by using a DBMS to enable better enforcement of data privacy and security regulations. Tracks Data Databases play a crucial role in the success of an online store. Databases are vital because they allow you to store, manage, and analyze large volumes of data fast. Companies can immediately adjust, and update based on changing market conditions thanks to well-organized and up-to-date data. The following are some of the most frequent types of data that databases may assist e-commerce businesses store and track: Product Information Databases assist e-commerce sites in updating and storing product information. Product descriptions, prices, specs, product reference numbers, promotions, and availability are all examples of this. By uniformly keeping all pages up to date with the same information, updating this information through your database saves you the time and effort of changing and publishing new data to each individual site page. 62 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Customer Information E-commerce sites benefit greatly from having client data to store and analyze. Information such as contact information, names, spending patterns, and more can be stored in databases for eventual marketing purposes. Personal demographic information, for example, is extremely important in determining purchasing power. This form of data collection aids in the creation of distinct target markets and improves client communications, enabling online commerce companies to focus on the desires and needs of their customers. Issues and challenges are easier to resolve when you know what a customer wants. Transactional Information One of the most significant functions of a database for an e-commerce site is transaction tracking and management. Keeping track of every order as it moves through the sales funnel, as well as the necessary processing details, is critical to keeping the firm running. After each transaction, the database assists in keeping inventory up to current, including what is in or out of stock, billing, shipping statuses, purchase orders, and more. Databases are essential for a successful and effective e-commerce site. Databases assist in the digital storage and organization of critical data, whether you have a small business with limited data or a large store with millions of products. With that much data to process, it would be impossible to do so without using a database. Code Because the purpose of this requirement is primarily to demonstrate one's ability to connect to a MySQL database using PHP, I avoided obtaining a lot of data from the user and instead focused on the bare minimum to handle user registration and authentication. The following code sample shows how to connect to a database with PHP, using a basic select statement and an if condition to tell the system how to proceed depend on the results. 63 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Database connection and running an SQL statement Storing data from form When a customer registers for the first time, for example, data is stored. SQL's job is to manipulate databases, allowing it to obtain information from them, as well as insert, update, and delete records. SQL has the ability to summarize, calculate, and sort data across several tables. SQL queries like WHERE, SELECT, and UPDATE would be used. 64 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Advantages of database technology Improved data sharing The database management technique has the advantage of assisting in the creation of an environment where end users have better access to more and better-managed data. End users can respond fast to changes in their environment with this kind of access. Improved data security The bigger the number of users that have access to the data, the greater the chance of a data security breach. Corporations spend a lot of time, effort, and money to make sure that their data is used correctly. A database management system (DBMS) provides a framework for enforcing data privacy and security regulations more effectively. Better data integration Access to well-managed data allows for a more holistic view of the organization's operations and a clearer understanding of the big picture. It is a lot easier to understand how activities in one part of the firm effect the rest of the company. Minimized data inconsistency When various versions of the same data emerge in different places, this is known as data inconsistency. When a company's sales department stores a sales representative's name as "Bill Brown" but its personnel department stores that same person's name as "William G. Brown," or when a company's regional sales office shows a product's price as $45.95 but its national sales office shows the same product's price as $43.95, for example, data inconsistency exists. In a well-designed database, the chances of data inconsistency are greatly reduced. Improved data access The DBMS enables the generation of rapid responses to ad hoc queries. A query is a specific request sent to the database management system (DBMS) for data manipulation, such as reading or updating data. Simply explained, a query is a question, and an ad hoc inquiry is a question asked on the spur of the moment. The DBMS responds to the application with a response (known 65 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment as the query result set). When dealing with big amounts of sales data, for example, end users may require quick replies to questions (ad hoc queries) such as: - What was the dollar volume of product sales in the last six months? - How much has each of our salesmen earned in sales bonuses during the last three months? - How many of our customers have credit balances of 3,000 or more? Improved decision making Better-managed data and increased data access allow for the generation of higher-quality data, which may then be used to make better decisions. The quality of the underlying data determines the quality of the information generated. Data quality refers to a holistic approach to ensuring data accuracy, validity, and timeliness. While the database management system (DBMS) does not guarantee data quality, it does provide a framework for data quality initiatives. Increased end-user productivity End users can make quick, educated decisions based on the availability of data and the tools that translate data into useable information, which can mean the difference between success and failure in the global economy. Disadvantages of database technology Database systems provide substantial advantages over earlier data management methodologies, but they also have significant downsides. Consider the following scenario: Increased costs Database systems necessitate sophisticated hardware and software, as well as highly skilled staff, which is one of the downsides of DBMS. The cost of maintaining the hardware, software, and staff needed to run and manage a database system can be significant. When database systems are established, costs such as training, licensing, and regulatory compliance are sometimes disregarded. 66 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment Management complexity Database systems work with a variety of technologies and have a big impact on a company's resources and culture. To ensure that the changes brought on by the deployment of a database system assist the firm achieve its goals, they must be appropriately managed. Because database systems store critical company data that is accessed from various sources, security concerns must be examined on a regular basis. Maintaining currency You must keep your database system current in order to improve its efficiency. As a result, you must keep all components up to date and apply the latest patches and security measures. Personnel training costs are typically significant due to the rapid advancement of database technology. Dependence on vendors. Companies may be hesitant to switch database vendors due to significant investments in technology and personnel training. As a result, providers are less likely to provide current customers with pricing point discounts, and those customers may have fewer options for database system components. Frequent upgrade/replacement cycles Vendors of database management systems routinely update their products by introducing new features. These new features are frequently included in new software upgrade versions. Hardware updates are required for some of these versions. Not only do upgrades cost money, but so does training database users and administrators on how to utilize and handle the new capabilities appropriately. 67 ECOMMERCE | NG19477 E-Commerce & Strategy Individual assignment References eHow.com, 2020. WHY IS TECHNOLOGY IMPORTANT IN BUSINESS?. [Online] Available at: https://www.oksbdc.org/why-is-technology-important-in-business/ [Accessed 16 December 2021]. Forbes, 2020. Walmart’s E-Commerce Grows 97% Compared To Industry’s 27%. [Online] Available at: https://www.forbes.com/sites/shelleykohan/2020/08/19/walmarts-e-commerce-grows-97compared-to-industrys-27/?sh=4f02b62228ca [Accessed 2 January 2022]. Learn.org, 2020. What Is Communication Technology. [Online] Available at: https://learn.org/articles/What_is_Communication_Technology.html [Accessed 30 December 2021]. Levy, E., 2018. Quick Guide to Database Technologies. [Online] Available at: https://www.sisense.com/blog/quick-guide-database-technologies/ [Accessed 3 January 2022]. McKinnon, T., 2020. Why Home Depot’s eCommerce Business is Outperforming. [Online] Available at: https://www.indigo9digital.com/blog/homedepotecommercestrategy [Accessed 2 January 2022]. ModernRetail, 2020. Inside Ikea’s e-commerce strategy. [Online] Available at: https://www.modernretail.co/retailers/ikea-is-launching-an-e-commerce-app/ [Accessed 2 January 2022]. Team, I. E., 2021. What Are Customer Expectations and Why Are They Important?. [Online] Available at: https://www.indeed.com/career-advice/career-development/customer-expectations [Accessed 16 December 2021]. 68 ECOMMERCE | NG19477