Post on 20-Aug-2015
©2009 Yeoman Technology Group – All rights Reserved
Internet Sales TrendsUnderstanding the Major On-line Sales and
Distribution Systems on the Web
©2009 Yeoman Technology Group – All rights Reserved
Goals of TodayOutline the various Internet Sales Channels
Current State of WebBusiness potential of eachExamples of missed opportunities
Discuss Customer Buying TrendsConsumerBusinessGovernment / Education
Recommend Specific ActionsShort termLong term
©2009 Yeoman Technology Group – All rights Reserved
About Yeoman
Multi-Channel Distribution ApproachFocus on entire webSegment into ‘channels’Match customer buying patterns
Internet focus is on Sales, not MarketingRely on usage statistics to support any assumptions
©2009 Yeoman Technology Group – All rights Reserved
What’s an Internet Sales Channel?
DirectMajor
E-TailersBid / Auction Supply Chain
SystemsReferral /Associated
Knowledge / Social
Anywhere from 10 – 30% of a manufacturers sales comes from one of these channels
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2009 Internet Revenue by Distribution Point
14%
28%
16%
31%
8% 4%
DirectE-TailerBidSupplyReferralSocial
Source: 2009Aggregation of IDC/Gartner stats for worldwide sales via different channels
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The Big Myth
DirectMajor
E-TailersBid / Auction Supply Chain
SystemsReferral /Associated
Knowledge Centric Social Centric
Each are distinct channels with their own group of competitors, systems, and links
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What Channels Matter?Base on customer pattern
Presence – Are they active usersPropensity – Are they likely to buy while therePurchase – Are they buying
This is a separate criterion from what you would use when looking at general marketing, branding, or customer support.
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Traditional Sales & Distribution Model
Manufacturer
Distributor
Retail
Partners
OEM Consultant
Direct
Sales Team
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Internet Delivery not consistent
Manufacturer
Distributor
Retail
Partners
OEM Consultant
Direct
Sales Team
Direct
ETailers
Bid
Supply Chain
Referral
Social
©2009 Yeoman Technology Group – All rights Reserved
Internet Sales ChallengeEach Channel has multiple vendorsNone of the systems are interconnectedExistence in one may HINDER client ability to find you in anotherCan require significant investmentMust be aware of traditional channel conflictNot the core focus of any one group within a Company
Often get lumped in with IT, Marketing, Finance, or Support depending on system
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Direct Channel
Easily understood10-30% of buyers look to Company site firstMost common source of channel conflictOften have to compete with Corporate & Marketing teamsWho owns the site?Major focus on “SEO”
Issue
•US Software firm didn’t want ‘direct’ site
•Felt it would conflict with channel
Problem
•Major price differences on web
•No way to find price
•Competitors always ‘appeared’ lower
Solution
•Establish main presence on web
•Avoided conflict by fulfilling via partners
•Eliminated pricing questions
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Auction Systems
$100 billion marketEBay most commonly knownHeavy system use by consumers and heavy equipment mfgNeed to have presence to protect brand
Issue
•High end consumer coffee manufacturer felt they didn’t “need” to be on EBay
Problem
•They were there
•New products via retail partners
•Plus those searching were sent to competitors
Solution
•Create “Outlet” store
•Call out copyright infringements
•Protect other brand and partners
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Supply Chain / B2B
The Quiet Giant (<$200b)Major vehicle for many organizationsFast growth in Gov/Ed spaceNo interconnectivity or links to general searchBusiness is there, you may just not know about it!
Issue
•Sonicwall has steadily tried to build newer products for larger clients
Problem
•Large Fortune 500 client wanted 200 Sonicwalls
•Product was not in system
•Notice went out to suppliers, who bid Cisco…..
Solution
•Establish Direct Link
•Work with partners on other systems
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Major E-Tailers
$180 billion last yearTop 500 dominate marketControls a whopping 30% of user trafficMost have virtual inventories and direct feedsMajor mistake to believe its consumer only
Issue
•Celestron Biological Microscope never considered Amazon as a place for their products.
Problem
•Four vendors had products listed
•Major gaps in product specs and details
Solution
•Establish Direct feed into Amazon
•Clarified gaps in product details
•Best selling Biological Microscope
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Referral Systems
Account for 13% of all major E-tailer traffic10% Growth in 2009 Requires feeds into core systemsReferral fees 1-6%Will take feeds which help search engine ranking
Issue
•High End Dress manufacturer forced to layoff due to retail clients. Web page does poorly
Problem
•Great name among shoppers
•Can’t afford marketing budget
•Great margin to share
Solution
•Establishes relationship with major women’s referral systems
•Offers higher ‘cut’ relative to all others
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Knowledge Systems
Very common on webFocuses on specific topic
Controlled discussionsHigher end informationSeparate from ‘selling’ site
DIFFERENT from social sites
You control contentNo peer controlBrand is managed
Issue
•Book publisher was trying to identify ways to make more clients aware of their specialized solution
Problem
•Main discussion site owned by competitor
•Controlled community
Solution
•Establish own site
•Partner with other non-profit options
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Social Networking
Major focus for marketingAre customers buying?Need to stop wasting resourcesAggregate postingsStudy trafficDetermine if sales oppty exists or is it just branding
Issue
•Regional Bank was struggling with Marketing's obsession with social networking
Problem
•Wasted time
•Wasted resources
•No deliverables
Solution
•Figured out how to sell!
•Established SINGLE posting of mortgage rates
•Multiple systems, thousands of followers.
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Take Away Points
Key Items to remember:
Web serves multiple elements within a businessMarketingSalesSupportDevelopment
Align the web responsibility and functions with the Lines of Business
Need to look at entire Internet infrastructure at a holistic level
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www.yeomantechnologies.commhealey@yeomantechnologies.com800-667-6098
Questions?