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E-commerce

E-commerce. And Social Media. Business Models. Business models are plans, activities, processes designed to result in profit 8 key elements Value proposition Revenue model Market opportunity Competitive environment (life cycle) Competitive Advantage Market strategy

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E-commerce

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  1. E-commerce And Social Media

  2. Business Models • Business models are plans, activities, processes designed to result in profit • 8 key elements • Value proposition • Revenue model • Market opportunity • Competitive environment (life cycle) • Competitive Advantage • Market strategy • Organizational development • Management team

  3. E-COMMERCE Revenue MODELS

  4. Technology is the Enabler • Ubiquity • Global reach • Universal standards • Richness • Interactivity • Personalization and customization • Information density • Social networking technologies

  5. It’s the Technology, Sunny! • Hardware: Web servers • Software: OS and Server Software • Networking: Routers • Security: Encryption • E-commerce Software for B2C, B2B • Streaming and Rich Media, RSS • CRM Software

  6. It’s the Technology, Silly! • Payment systems – the technology behind iTunes story, and PayPal • Performance Enhancements • Databases – the big ones Oracle, MS, IBM • Hosting services – getting you on the “highway” • What might be next? Where?

  7. Influences of Internet Porter’s Five Forces Model • Substitutes • Pro: expand size of market • Con: threats of substitution • Power of Suppliers • Rivalry among existing competitors • Barriers to entry • Bargaining power of channels • Bargaining power of end user

  8. Social media: select categories • More than Facebook • Streaming video • Media sharing, Pintrest, YouTube • Blogs and microblogs, Twitter • Review sites, TripAdvisor • Wikis, widgets • RSS feeds, message boards

  9. Social Media & Distribution • Social media contribute to search engine optimization. • Social media can improve travel experience. • Social media is the new “PR” • Social media can feed traditional media such as talk shows, news programs, and vice versa. • Most social media outlets are owned by established media (newspapers, TV, other)

  10. Facts about Social Media & Travel • Features used while travel shopping: • 66%: interactive maps • 62%: consumer reviews • 52%: professional reviews • 47%: professional photos • 41%: consumer photos

  11. Facts about Social Media & Travel • Features used while travel shopping: • 29%: social network posts (FB, Twitter) • 26%: professional video • 23%: consumer video • 20%: travel company’s social network (FB, etc) • SURPRISED? (PhoCusWright 2012)

  12. Attribution of Social Networks to… • OTAs – 3.5% • Airlines – 6.1% • Hotels – 3.3% • Cruise – 7.0% • 89% of consumer “Like” or “Follow” brands but on 29% do so for TRAVEL…..

  13. Social Network Behavior • 43% post comments or photos about travel • 33% Ask for advice on travel using networks • 28% share travel deals • 30% search for deals for travel • 42% post and share WHILE traveling • 25% download apps to use on social network pages for or about travel • Thoughts?

  14. C U S T O M E R E X P E R I E N C E Consumer Behavior Today

  15. S E O & S E M • Organic Search • Local Search • Paid Search • Retargeting Ads

  16. R E V I E W S & D I G I T A L I N T E R A C T I O N

  17. T O P L I N E Revenue B E N E F I T S Review Sites % of Total # of Travelers Reviews 2008: OTAs – 53% Review Sites – 47% 2011: OTAs – 71% Review Sites – 29%

  18. Some Thoughts on Reviews • 86.6% of all Reviews (NOT on OTAs) are on TripAdvisor (watch TA) • # of Reviews is Proportional to room supply in Star categories • When ADR (US$) goes up, positive reviews (“Sentiment Index”) goes down. • Economy & Luxury manage guest expectations • 2, 3, and 4 Stars have challenges doing so

  19. Hamilton Island Case Study • Encouraged guest reviews • 77 percent increase 2011 to 2012 • Cooperation between operations, revenue management, and marketing departments • Closely monitored and responded to reviews • 60 percent increase in responses 2011 to 2012

  20. Hamilton Island Case Study • Visits to Brand.com tripled 2011 to 2012 • 94% increase in room nights SOLD in 2012 • Direct revenue from TripAdvisordoubled • Conversion • Every dollar spent managing TripAdvisor converted to $6 in direct online sales

  21. R E V I E W S: More Reviews = More Positive Scores = More Revenue (Source: Revinate)

  22. R E V I E W S Case Study: M O N D R I A N S O H O p e r r o o m 2012 Ratio 2.35 2012 Comp Set Rank 3 2012 Comp Set Average 2.29 2012 Reviews per Room Index 102.61 (Source: Revinate)

  23. R E V I E W S: M O N D R I A N S O H O r e s p o n d i n g t o r e v i e w s 2012 (Source: Revinate)

  24. R E V I E W S: M O N D R I A N S O H O r e s p o n d i n g t o r e v i e w s (Source: Revinate)

  25. R E V I E W S: A C T I O N A B L E I T E M S • Encourage additional reviews from guests and patrons • Respond to additional reviews • Continue to monitor and analyze reviews • Monitor and analyze Twitter and Facebook chatter • Increase total reviews • Respond to 75 percent

  26. R E V I E W S: I N C R E M E N T A L B E N E F I T S Become leader in digital competitive set Increase total digital chatter Increase traffic to brand.com Enhance guest experience Increase room nights and revenue

  27. Social media helps • Drive traffic to brand.com • Highlight brand distinctions • Increase brand awareness • Promote guest retention

  28. Thoughts on Mobile • Hotel bookings: Last Minute • Travel experience enhancement • Destination Marketing opportunity • Business travel managers have not endorsed • BUT…..it is the device of social • SO-LO-MO is here

  29. How Mobile is Fueling Social

  30. US Moms Buy & Buy Travel

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