B2C and B2B What’s the hype?

1. B2C and B2BWhat’s the hype? INBS 510 Professor Anna Story

2. E-tailing Business Models • The business model: • Embodies a plan for offering a value proposition to customers, a source of revenues, an identification of costs and a detailed set of processes for execution. • B2C categorized as by the ways revenues are generated

3. B2C Business Models • Subscription models • Transaction fee models • Advertising supported models • Sponsorship models

4. Value Proposition • Value proposition:The benefits a company can derive from using EC • search and transaction cost efficiency • complementarities • lock-in • novelty • aggregation and interfirm collaboration

5. Another angle to classify B2C business models • Types of sites • Direct marketing sites from manufacturers such as Dell, Nike or Sony • Pure play e-tailers like Amazon.com who do not have a physical presence • Clicks and mortars such as Wal-Mart or Home Depot • Also: • General purpose vs. niche e-tailing http://www.kimonoart.com • Global vs regional ie. http://www.rivercitygrille.com a local restaurant

6. Understanding the Internet Consumer • Forrester Research- Internet Economy • Technographics- attitude toward technology • Early adopters- first to get online and shop 30 % • Mainstream- slower to adopt 47% • laggards- last to move online 22% demographics psychographics

7. Digital hopefuls7% Fast forwards 12% Gadget grabbers9% Handshakers7% Media junkies5% Mouse potatoes 9% % of 204 million US adults Mary Modahl – Now or Never- Winning the Battle for the Internet Consumer New age nurturers 8% Sidelined citizens28% Technostrivers7% traditionalists8% Forrester Research of Technographics

8. Attitude toward technology Age gender Income high income optimists low income optimists high income pessimists low income pessimists Motivation to use technology Entertainment Family career Why consumers buy on-line

9. High income optimists Career motivated Early adopters Low to moderate income Older mainstream Example Starbucks vs Maxwell House

10. Fast forwards- career Travel electronics Cars Books , music video stocks New age nurturers- family Music video Clothing software entertainment fun social status excitement Getting the Early Adopters

11. Early adopters • ie. Mouse potatoes- high income optimists for entertainment • Clothing • Music video • Spenders- compulsive • Style conscious

12. High income pessimists Apathy Need to increase familiarity Improve ease interest Low income optimists Communities Discounts Time saving convenience BUT B2C wants mainstream= ½ trillion dollars

13. www.internetworld.com • Seven Practical Ways to become fanatical on behalf of your customers • Offer customers choices www.carsdirect.com • Accountability is key • Bake it into the company culture www.autobytel.com • Know your customer Mine customer data, know their DNA • Value the current crop– repeat business • Human touch matters • Measure it- quantitative methods

14. Winning the Mainstream:Five Step Program • Make it easy for customers to do business with you • Focus on the end customer for your products and services • Redesign you customer facing business processes from the end customer’s point of view • Wire your company for profit: design a comprehensive, evolving electronic business architecture • Foster customer loyalty- the key to profitability

15. 1-Make it easy, easy easy… • Streamline interactions • Don’t waste my time • Remember us • Make it easy to order • Make sure your service delights • Customize for me

16. 2-Focus on the End customer • Interact directly • Know your customers • Make them feel special • Build community • Provide services and info

17. 3- Redesign from customer’s point of view • Stream line behind the scenes • Database of customer profile info • Hallmark.com - card services • General Motors - security and convenience • Prepare for ripple effect

18. 4- Wire for Profit • Integration • CRM • Supply chain • Know Technologies • Smart cards • Digital certificates • XML • Java

19. 5- Foster loyalty • Measure customer revenue • Measure customer costs • Measure customer profitability • Evaluate defection • Finding and keeping right customers • Big question – How do you evaluate and measure? Any ideas?

20. Critical Success Factors • Target right customer • Own the customer experience • Streamline • 360 degree view of customer relationship • Let customers help themselves • Help customers • Deliver personalized services • Foster community customer.com, Patrica Seybold

21. Targeting the Right customer • http://www.aa.com • http://www.national.com • How have these targeted the correct customer? • Use technographics to market

22. Owning the Customer’s Experience • http://www.hertz.com • http://www.amazon.com • http://www.fedex.com • http://www.nike.com • Describe personalization and customization techniques

23. Streamlining • http://www.nsf.gov • How has this streamlined?

24. 360 degree view • http://www.amazon.com • What is their 360 degree view?

25. Customers helping themselves • http://www.dell.com • http://www.iprint.com • http://www.landsend.com • How does the customer help him/herself?

26. Helping customers do their jobs • http://www.photodisc.com • Describe the supports

27. Personalized service • http://www.onstar.com • Describe the personalization

28. Foster Community • http://www.cisco.com • http://www.tripod.com • Do you think community is as important as it is purported to be? • How is community fostered?

29. B2B Intro • Electronic Markets • Private marketplaces • Sell side • Buy side • Exchanges • consortia

30. Portals • Commercial • Corporate • Publishing • Personal • Mobile • Voice www.tellme.com

31. Intermediaries • E-distributors www.grainger.com • Electronic catalogs. Whatever happened to the Sears catalog?

32. Auctions • Reverse auctions • www.priceline.com Know these: • Dynamic Pricing • Liquidity