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Business-to-Consumer

Presented by Stacey Riegel


Spring 2003
Business-to-Consumer
Defined
The Business Side
The Customer
The Business/Customer Relationship
B2C and the Real World
Exercise
Summary
Reading List


What is Business-to-Consumer?
B2C
E-commerce
E-business


E-tailing
B2C = 10%
B2B = 90%
The Business Side
Benefits Vs. Challenges
The Market
Needs of the Consumer
Continuous Research

Benefits to B2C
Reduce Intermediaries
Reduce Labor Costs
Shorter Transaction Times
Improved Customer Service
Expanded Market



Challenges
Costly
Organization Wide Commitment
Continuous Change
New Intermediaries
Scaleable & Flexible Supply Chain
New Age Intermediaries
Customer
Portal
Aggregator
e-Retailer
Infomediaries
The Competitive Edge
Quick to Evolve
Solutions to Offline
Compromises
Personalized Service
Strong Brands


The B2C Customer




Empowered by Technology



Consumer Concerns
Privacy
Security

Consumer Frustrations
Lengthy Web Forms
Complicated Sites
Minimal Assistance
Undisclosed Expenses
Building the Business/Consumer
Relationship
Unique Service for the
Consumer
Trust

The Strategy
Converting Visitors to Buyers
CRM
Web Assurance Services

About CRM
Customer Relationship Management
Developing Customer Profiles
Forecast Customer Behavior

CRM Advantages
Committed Customer
Lower Sales and
Service Cost

Building Trust
Higher Standards of Privacy
Web Assurance Services
Disclosure of Sales and Privacy Policies





Web Assurance Services
BBBOnline (www.bbbonline.org)
CPA WebTrust (www.cpawebtrust.org)
VeriSign (www.verisign.com)
TRUSTe (www.TRUSTe.org)

B2C The Real World
Nexchange
solving the abandoned shopping cart case
Lands End
an e-commerce pioneer
Nexchange and The Abandoned
Shopping Cart Case
Average abandonment rate = 2/3

Attacking the Problem
Decrease
Abandonment


Increase Sales

Lands End Leadership in B2C
Whats best for the customer is best for
Lands End
Personalized shopping accounts
Virtual Model
Easy Returns


www.landsend.com



The 8 Best Practices
Bill Demas, VP of Marketing Vividence, San Mateo, Calif.
1. Disclose all costs
2. Show users whats
in their carts
3. Allow customers to
change orders
4. Save cart contents
for return visits



8 Best Practices Continued . . .
5. Easy use of special promotions
6. Beef up customer service
7. Encourage shipping to multiple
destinations
8. Short forms
The Customer -



The Key to Success

Reading List
Customer Relationship Management and E-business: More Than a Software
Solution, Review of Business; Jamaica; Winter 2003; Edna Johnson Ragins;
Alan J Greco; vol. 24, issue 1, pp. 25-30
Web Assurance Services: What Internal Auditors Need to Know, Internal
Auditing; Boston; Nov/Dec 2002; Conni Lehmann; R Steve McDuffie; Bruce
Runyan; L Murphy Smith; vol 17, issue 6, pp. 17-23
Failure to Assure Security Seen Behind Slow Growth of Online Shopping;
BusinessWorld; Manila; Jul 2, 2002; Elanore C Sanchez, p. 1
B-to-C Advertisers Learn Online Tricks From Biz Colleagues; Marketing News;
Chicago; Jun 24, 2002; Deborah L Vence; vol 36, issue 13, p. 4
How Online Retailers Can Attract Customers; Business Times; Kuala Lumpar,
Mar 10, 2000; Jennifer Jacobs, p 5
E-tailing Survival Guide; eCompany Now; Dec. 2000; Stacy Perman
Operations Management 4
th
Edition; Roberta S. Rusell, Bernard W. Taylor III
Lands End: IBM technology a perfect fit for its B2B solution; an IDC e-business
case study; www.3.ibm.com

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