ECT 455/HCI 513 E-Commerce Web Site Engineering

1. ECT 455/HCI 513 E-Commerce Web Site Engineering Online Marketing Site Promotion and Evaluation ECT 455/HCI 513 Susy Chan Ph.D.

2. Agenda • Market News • Review B2B • Branding, Marketing and Advertising • Web Site Promotion • Web Site Evaluation • Web Site Cost Analysis • Deliverable E ECT 455/HCI 513 Susy Chan Ph.D.

3. Branding • What is Brand? • Name, logo, symbol, user experience? • Brand Equity • The value of tangible and intangible items • Customer perceptions, loyalty • Transferable to the Web • Internet’s role • Further enhancement • Multi-channel • Monitoring (ewatch) ECT 455/HCI 513 Susy Chan Ph.D.

4. Marketing Strategies • Targeted Advertising vs. Broadcasting • Focused ads via keyword search (Lycos) • “narrow-casting”, one-way • Push vs. Pull Model • Push: banner ads, email solicitation; Webcasting; Intranets • Pull: two-way, need-based advertising; search engines; interactive; personalized ads; ECT 455/HCI 513 Susy Chan Ph.D.

5. Keys to Online Marketing Success Demographic and behavioral targeting Ensures the investment is pointed in the right direction Real-time, standardized reporting Enables one to optimize on-the-fly In-depth post-click reporting Leads to refined programs and stronger ROI One-to-one remarketing Creates a relationship with the consumer Source: DoubleClick ECT 455/HCI 513 Susy Chan Ph.D.

6. Campaign:Created anonymous link between person who saw ad and subsequent purchase. • Data Captured • # of sales generated • Type of units sold • Revenue per unitssold • Site, section and keywordgenerating sales • Revenue by business unit and linked sitegenerating sales Dell Closes the Loop Objective: To sell product and focus online marketing dollars on activities that generate sales. • Results: • adjusted strategic goals • redirected marketing dollars • moved more product relative to marketing expenditures Source: DoubleClick ECT 455/HCI 513 Susy Chan Ph.D.

7. Types of Internet Advertising • Banner Ads • Selling Advertising to Consumers • Web Storefronts • Non-conventional Means: • Product review or endorsement on newsgroups • Soliciting listings from search services • Soliciting and exchanging web link • Providing product-oriented mailing lists and e-mail updates ECT 455/HCI 513 Susy Chan Ph.D.

8. E-Mail Direct Marketing • Inexpensive and effective way to target potential customers; fast turnaround • Personalization –personalized email to target product offers based on customers’ interests or past purchases – to improve response rate • Opt-in email – permission –based marketing • To improve customer service. • Combined with traditional direct marketing • Services: Digital Impact, Boldfish ECT 455/HCI 513 Susy Chan Ph.D.

9. Banner Advertising • Banner ads and panel Ads • Bandwidth hogs; delay downloading • Measures for Advertising fees • impressions, hits, qualified hits, visits • click-throughs (adclicks) • Effective Marketing Mechanism? • Buying and selling banner advertising: pay-per-performance (DoubleClick) ECT 455/HCI 513 Susy Chan Ph.D.

10. Measures of Online Advertising • Ad Impression • Visit (Page View) • Click-Through • Page Impression (Hit Counts) • Unique Visitors • Reach ECT 455/HCI 513 Susy Chan Ph.D.

11. Costs for Online Advertising • Gross Exposure: CPM-- Cost per thousand impressions (underestimated) • e.g. $20,000/1 m impression X1000 = $20 • Click Rate: Cost per Click (CPC), “clickthrough”, number of clicks /cost of the ad campaign • Conversion : purchase/clicktrough • Examples • $35/CPM; $5/clickthrough; $25/conversion ECT 455/HCI 513 Susy Chan Ph.D.

12. Ad Targeting • Track ads across a network of sites • Monitoring who is clicking on the ads, how often, and whether the ads actually lead to sales • User profiles on demographics, tastes, & email addresses to improve targeting • Services: DoubleClick, Engage ECT 455/HCI 513 Susy Chan Ph.D.

13. Affiliate Programs • Forrester Research: by 2003 affiliates will generate 21% of online retailers’ revenue (13% in 1999) • Pay-per-click model: click-through • Goto.com, matchmaker • Pay-per-lead model: qualified leads • Mailsweeps.com • Pay-per-sale model: commission of sales (Express.com) • Multi-tiered Model • Merchants -> 10 % subaffiliates and 5% affiliates • CPM (Cost-per-thousand) model • Examples: Amazon ECT 455/HCI 513 Susy Chan Ph.D.

14. Rollout Promotion Register URL with search engines, embed keyword Include the site address in publications Inform distribution channels Award programs (netincentives) Points-based promotions (mypoints) New Releases Marketing through affiliates Ongoing Activities Include URL Adding site content to generates more search engine hits Traditional promotion Reciprocal links Newsgroups Purchase hot links Online coupons (free2try) Discounts (ipromotions) Domain name Reg. www.iana.org; internic.net; ripe.net; apnic.net Promoting a New Site ECT 455/HCI 513 Susy Chan Ph.D.

15. Search Engines • Web Robots http://info.webcrawler.com/mak/projects/robots/robots.html • Purposes • Collecting information • Provide Indexing • databases • Directory vs. Search Engines • Search-Engine Registration • searchenginewatch ECT 455/HCI 513 Susy Chan Ph.D.

16. Creating Spider Food • determines the relevance of the Web page’s info and keywords (ranking) • Listing all the key words; • Home Page Title • <title> These Are the Most Important Words to a Search Engine! </title> • Meta Tag • Add a <description> on your page • First Paragraph most important • Proximity • (Tennis shoe style > shoes for tennis) • Spider Repellent : (robots.txt) ECT 455/HCI 513 Susy Chan Ph.D.

17. Tracking and Analyzing Customer Data • Tracking devices – User ID card (embedded URL), click-through banner advertisement, Web bugs (clear GIFs) • Log-File Analysis : WebTrends • Data Mining– Uncover patterns in customer data to improve CRM and marketing campaign • Datadistilleries, appliedmetrix • Customer Registration • Cookies • Drawback: can be altered, browser specific, can’t recognize multiple users ECT 455/HCI 513 Susy Chan Ph.D.

18. E-CRM • Customer acquisition costs $34, online $70 (BCG) • Repeat customers 57% more revenue; longer lifetime value • It takes 2.5 years for a regular amazon customer to yield a profit • Call Handling • Sales Tracking • Transaction Support • Personalization and customization of customers’ experience and interactions with a Web site, call center, and methods for customer contact ECT 455/HCI 513 Susy Chan Ph.D.

19. Using Push Technology 1. Initial permission-based Registration with Site 4. Customer Database Collection Segmentation 2. Web page request Web Page Server Web Browser Cookie 132896 3. Cookie Identification 5. Dynamic Data 6. Personalized Web Site ECT 455/HCI 513 Susy Chan Ph.D.

20. Personalization • Uses information from tracking, mining and data analysis to customize a person’s interactions with a company’s products, services, Web site and employees • Collaborative filtering (Recommender System) • Compare a present user’s interests with those of past users to offer recommendations • Example: berkeley • Rules-based personalization : based on the subjection of a user’s profile to set rules or assumptions. Excite.com (My excite start page • Intelligent Agents ECT 455/HCI 513 Susy Chan Ph.D.

21. Web Effectiveness • How are people finding my site? • Which pages are linking to mine? • Which types of errors are occurring? • How may times have people requested something that returned an error? • Which browsers are people using to view my site? ECT 455/HCI 513 Susy Chan Ph.D.

22. Web Effectiveness • What pages are being viewed most often? • Has my site been getting busier lately? • How have the access trends been for a certain page? • How many bytes are being transferred? • Which directories are being access the most? • When are people visiting my site? ECT 455/HCI 513 Susy Chan Ph.D.

23. Site and page hits General site activity and growth Use statistics -- time of day, day of week, and month/season Caching--browser, proxy Users Domain and user spikes Single vs. Multi-Visit; visit length Language and geography patterns Errors and Alerts Site Reliability Sessions Entry and exit points Common paths Date and Time Stamps Date and time patterns Site activity and responsiveness by hour, day, and week Other Access No. of search engines attempting to index the site Search engine keywords Referring sites Limitation of Log Analysis Site Usage Analysis ECT 455/HCI 513 Susy Chan Ph.D.

24. Impact Measures • Cost Reduction • Printing and postage avoidance • Communication Expense Avoidance • Headcount Expense Avoidance • Facilities and Capital Expense Avoidance • Tax Avoidance or reduction ECT 455/HCI 513 Susy Chan Ph.D.

25. Impact Measures • Revenue Growth • Increased Sales of Existing Products or Services • Increased Sales of New Internet-based Products or Services • Improved Customer Satisfaction • Improved Surveys or Customer Evaluations • Changes in Complaint Levels • Quality Improvements • Addressing Other Business/Customer Needs ECT 455/HCI 513 Susy Chan Ph.D.

26. Collecting Audience Information • Formally through surveys -- pre- and post-site implementation • Informally through e-mails -- an opportunistic measure • E-mail page; email embedded in forms • Motivationally through site incentives -- proactive • Downloads, Coupons, Quizzes ECT 455/HCI 513 Susy Chan Ph.D.

27. Cost Factors bandwidth options web server platform business publishing network security full annual cost for an intranet client building interactive applications content maintenance people Catalog/search engine software Payment software Types of Costs Predictable Soft Costs/Savings Hidden Costs Generational Costs Cost, Costs, and More Costs ECT 455/HCI 513 Susy Chan Ph.D.