Business-to-ConsumerBusiness-to-Consumer

Presented by Stacey RiegelPresented by Stacey Riegel

Spring 2003Spring 2003

Business-to-ConsumerBusiness-to-Consumer

• DefinedDefined• The Business SideThe Business Side• The CustomerThe Customer• The Business/Customer RelationshipThe Business/Customer Relationship• B2C and the Real WorldB2C and the Real World• ExerciseExercise• SummarySummary• Reading ListReading List

What is Business-to-What is Business-to-Consumer?Consumer?

• B2CB2C• E-commerceE-commerce• E-businessE-business

E-tailingE-tailing

• B2C = 10%B2C = 10%• B2B = 90%B2B = 90%

The Business SideThe Business Side

• Benefits Vs. ChallengesBenefits Vs. Challenges• The MarketThe Market• Needs of the ConsumerNeeds of the Consumer• Continuous ResearchContinuous Research

Benefits to B2CBenefits to B2C

• Reduce IntermediariesReduce Intermediaries• Reduce Labor CostsReduce Labor Costs• Shorter Transaction TimesShorter Transaction Times• Improved Customer ServiceImproved Customer Service• Expanded MarketExpanded Market

ChallengesChallenges

• CostlyCostly• Organization Wide CommitmentOrganization Wide Commitment• Continuous ChangeContinuous Change• New IntermediariesNew Intermediaries• Scaleable & Flexible Supply ChainScaleable & Flexible Supply Chain

New Age IntermediariesNew Age Intermediaries

CustomerCustomer

PortalPortal

AggregatorAggregator

e-Retailere-Retailer

InfomediariesInfomediaries

The Competitive EdgeThe Competitive Edge

• Quick to Evolve Quick to Evolve • Solutions to Solutions to

Offline Offline CompromisesCompromises

• Personalized Personalized ServiceService

• Strong BrandsStrong Brands

The B2C CustomerThe B2C Customer

Empowered byEmpowered by TechnologyTechnology

Consumer ConcernsConsumer Concerns

• PrivacyPrivacy• SecuritySecurity

Consumer FrustrationsConsumer Frustrations

• Lengthy Web FormsLengthy Web Forms• Complicated SitesComplicated Sites• Minimal AssistanceMinimal Assistance• Undisclosed ExpensesUndisclosed Expenses

Building the Building the Business/Consumer Business/Consumer RelationshipRelationship

• Unique Service for Unique Service for the Consumerthe Consumer

• TrustTrust

The StrategyThe Strategy

• Converting Visitors to BuyersConverting Visitors to Buyers• CRMCRM• Web Assurance ServicesWeb Assurance Services

About CRMAbout CRM

• Customer Relationship Customer Relationship ManagementManagement

• Developing Customer ProfilesDeveloping Customer Profiles• Forecast Customer BehaviorForecast Customer Behavior

CRM AdvantagesCRM Advantages

• Committed Committed CustomerCustomer

• Lower Sales and Lower Sales and Service CostService Cost

Building TrustBuilding Trust

• Higher Standards of PrivacyHigher Standards of Privacy• Web Assurance ServicesWeb Assurance Services• Disclosure of Sales and Privacy Disclosure of Sales and Privacy

PoliciesPolicies

Web Assurance ServicesWeb Assurance Services

• BBBOnline (BBBOnline (www.bbbonline.orgwww.bbbonline.org))• CPA WebTrust (CPA WebTrust (

www.cpawebtrust.orgwww.cpawebtrust.org))• VeriSign (VeriSign (www.verisign.comwww.verisign.com))• TRUSTe (TRUSTe (www.TRUSTe.orgwww.TRUSTe.org))

B2C – The Real WorldB2C – The Real World

• Nexchange – Nexchange –

solving the abandoned shopping cart solving the abandoned shopping cart casecase

• Lands’ End –Lands’ End –

an e-commerce pioneeran e-commerce pioneer

Nexchange and The Abandoned Nexchange and The Abandoned Shopping Cart CaseShopping Cart Case

• Average abandonment rate = 2/3Average abandonment rate = 2/3

Attacking the ProblemAttacking the Problem

• Decrease Decrease AbandonmentAbandonment

• Increase SalesIncrease Sales

Lands’ End – Leadership in Lands’ End – Leadership in B2CB2C

““What’s best for the customer is best for What’s best for the customer is best for

Lands’ End”Lands’ End”• Personalized shopping accountsPersonalized shopping accounts• Virtual ModelVirtual Model• Easy ReturnsEasy Returns

www.landsend.comwww.landsend.com

The 8 Best Practices The 8 Best Practices Bill Demas, VP of Marketing – Vividence, San Mateo, Calif.Bill Demas, VP of Marketing – Vividence, San Mateo, Calif.

1.1. Disclose all costsDisclose all costs

2.2. Show user’s Show user’s what’s in their what’s in their cartscarts

3.3. Allow customers Allow customers to change ordersto change orders

4.4. Save cart Save cart contents for contents for return visitsreturn visits

8 Best Practices Continued 8 Best Practices Continued . . .. . .

5.5. Easy use of special promotionsEasy use of special promotions

6.6. Beef up customer serviceBeef up customer service

7.7. Encourage shipping to multiple Encourage shipping to multiple destinationsdestinations

8.8. Short formsShort forms

The Customer -The Customer -

The Key to SuccessThe Key to Success

Reading ListReading List

• Customer Relationship Management and E-business: More Than a Customer Relationship Management and E-business: More Than a Software Solution, Software Solution, Review of BusinessReview of Business; Jamaica; Winter 2003; Edna ; Jamaica; Winter 2003; Edna Johnson Ragins; Alan J Greco; vol. 24, issue 1, pp. 25-30Johnson Ragins; Alan J Greco; vol. 24, issue 1, pp. 25-30

• Web Assurance Services: What Internal Auditors Need to Know, Web Assurance Services: What Internal Auditors Need to Know, Internal AuditingInternal Auditing; Boston; Nov/Dec 2002; Conni Lehmann; R Steve ; Boston; Nov/Dec 2002; Conni Lehmann; R Steve McDuffie; Bruce Runyan; L Murphy Smith; vol 17, issue 6, pp. 17-23McDuffie; Bruce Runyan; L Murphy Smith; vol 17, issue 6, pp. 17-23

• Failure to Assure Security Seen Behind Slow Growth of Online Failure to Assure Security Seen Behind Slow Growth of Online Shopping; Shopping; BusinessWorldBusinessWorld; Manila; Jul 2, 2002; Elanore C Sanchez, p. ; Manila; Jul 2, 2002; Elanore C Sanchez, p. 11

• B-to-C Advertisers Learn Online Tricks From Biz Colleagues; B-to-C Advertisers Learn Online Tricks From Biz Colleagues; Marketing NewsMarketing News; Chicago; Jun 24, 2002; Deborah L Vence; vol 36, ; Chicago; Jun 24, 2002; Deborah L Vence; vol 36, issue 13, p. 4issue 13, p. 4

• How Online Retailers Can Attract Customers; How Online Retailers Can Attract Customers; Business TimesBusiness Times; Kuala ; Kuala Lumpar, Mar 10, 2000; Jennifer Jacobs, p 5Lumpar, Mar 10, 2000; Jennifer Jacobs, p 5

• E-tailing Survival Guide; E-tailing Survival Guide; eCompany NoweCompany Now; Dec. 2000; Stacy Perman ; Dec. 2000; Stacy Perman • Operations Management 4Operations Management 4thth Edition; Roberta S. Rusell, Bernard W. Edition; Roberta S. Rusell, Bernard W.

Taylor IIITaylor III• Land’s End: IBM technology a perfect fit for its B2B solution; an IDC Land’s End: IBM technology a perfect fit for its B2B solution; an IDC

e-business case study; e-business case study; www.3.ibm.comwww.3.ibm.com