02.18.2011

Building an E-commerce Businessan approach for a Web 2.0 world

Curriculum

✤ Choosing a Business

✤ Creating a Plan

✤ The E-commerce Iceberg

✤ Road Map to Launch

✤ Running it

✤ 3 quick Case Studies: Small, Medium, Big - How they were Successful at Growth

Choosing a Business

✤ Is Your Idea Unique?

✤ If Not...

✤ Online is more Crowded than Offline

✤ Competing in a Google / Affiliate / Drop ship / eBay / Amazon world (POV)

RepeatMeasureMarketBuild

Creating A Plan

Research

Focus GrpsAd hoc calls

Customer InterviewCompetition

e-BayAffiliateWebsiteMobileKiosk

Partner

Design, BuildOrder Management

FulfillmentAccounting

Ops

AdvertisingOfflineOnlineSearchPPC

SocialMobile App

CRM

AnalyticsScorecard

Regular Review

e-Business Roadmap

ChannelSelection

The E-commerce Iceberg

The “New” E-commerce Roadmap

RepeatMeasureMarketBuildFulfillment

Product SourcingInventory vs Drop ShipStorage / WarehouseOrder Management

e-BayAffiliateWebsiteMobileKiosk

Partner

Design, BuildOrder Management

FulfillmentAccounting

Ops

AdvertisingOfflineOnlineSearchPPC

SocialMobile App

CRM

AnalyticsScorecard

Regular Review

e-Commerce WEBSITE Roadmap

ChannelSelection

The “New” E-commerce Roadmap

RepeatMeasureMarketBuildFulfillment

Product SourcingInventory vs Drop ShipStorage / WarehouseOrder Management

e-BayAffiliateWebsiteMobileKiosk

Partner

Design, BuildOrder Management

FulfillmentAccounting

Ops

AdvertisingOfflineOnlineSearchPPC

SocialMobile App

CRM

AnalyticsScorecard

Regular Review

e-Commerce WEBSITE Roadmap

ChannelSelection

The “New” E-commerce Roadmap

RepeatMeasureMarketBuildFulfillment

Product SourcingInventory vs Drop ShipStorage / WarehouseOrder Management

e-BayAffiliateWebsiteMobileKiosk

Partner

Design, BuildOrder Management

FulfillmentAccounting

Ops

AdvertisingOfflineOnlineSearchPPC

SocialMobile App

CRM

AnalyticsScorecard

Regular Review

e-Commerce WEBSITE Roadmap

ChannelSelection

The “New” E-commerce Roadmap

RepeatMeasureMarketBuildFulfillment

Product SourcingInventory vs Drop ShipStorage / WarehouseOrder Management

e-BayAffiliateWebsiteMobileKiosk

Partner

Design, BuildOrder Management

FulfillmentAccounting

Ops

AdvertisingOfflineOnlineSearchPPC

SocialMobile App

CRM

AnalyticsScorecard

Regular Review

e-Commerce WEBSITE Roadmap

ChannelSelection

Building the Business

Analytics Review

Planning

Execution

Analytics Review

Improvement Cycle

Constant Improvement Cycle

Dunkin' Donuts Weekly Dashboard

Week of 2007 Feb 12 to Feb 18

Sales %! 2006 Totals DD Card Non-DD Card

Sales net of shipping $120,654.60 21% $95,299.11 $16,660.00 $103,994.60

Average Order (# of Products) 4.03 0% 4.03 4.75 3.79

Average Order ($ of Amount) $38.25 0% $38.32 $12.13 $34.57

Customer Count 1026

Sales per Visitor Session $0.96

Regular Refills % of Total Sales 52.81%

Lb. Coffee Sales Daily + Weekly* $54,703.55 *includes 1lb ground and whole bean

Top Ten 1. 1lb Gound Original Blend

3. 5lb Whole Bean Original Blend

2. 2oz Ground Original Blend - 48 pack

4. Gift Certificate, $1 - book of 5

6. 1lb Whole Bean Original Blend

4. Dunkin Donuts Card, Denomination

7. 1 lb Ground Dunkin Decaf

7. 1lb Ground French Vanilla

9. Dunkin Donuts Card, Denomination (25 cards min.)

10. 1lb Ground Hazelnut

Card 1/29- 2/4 2/5- 2/11 2/12- 2/18

Total $ Sales of Cards $18,760.00 $27,155.00 $16,660.00

Total # of Cards Sold 1840 2929 1373

Average $ Amount of Cards Sold $10.20 $9.27 $12.13

Registrations 14,766 4,852 4,388

Site Performance

Page Views 1,751,626

Visits 125,342

Average Visit 4:58

Median Visit 2:10

Views per Session 13.97

Search Referrals 54,460

Repeat Visits 6,314

MNET Page 2 of 2

Dunkin’ Dounuts

May 2007 Web Performance

!

665 Boylston Street, Floor 4Boston, Massachusetts 02116

T 617.859.7900

F 617.249.0665

dashboard@maintainnet.com

maintainnet.com

DASHBOARD ANALYSIS

May 06 Apr 07 May 07 2007 YTD

Page Views 6,113,193 6,249,402 7,023,433 38,717,592

Visits 519,826 581,657 713,088 3,840,945

Average Visit 0:04:45 0:05:00 0:04:39 0:05:14

Median Visit 0:01:58 0:02:06 0:02:01 0:02:17

Views / Session 11.76 10.74 9.85 10

Search Referrals 239,369 246,115 290,895 1,452,931

Repeat Visits 10.19% 9.75% 9.65% 10.22%

Site Performance

300K

600K

900K

1,200K

1,500K

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

231K 221K 209K 190K 193K 211K

438K 449K

246K

385K

254K300K

503K 480K 476K 471K 498K 495K

785K

859K

582K

1,105K

582K

713K

Total Visits & No Referrer Visits

Visits No Referrer

2006 YTD %! 2007 YTD

Sales (Net of Shipping)

$2,316,115 21% $2,801,462

Regular Refills % of Total Sales

52% 0% 52%

Customer Count/ New Orders

18,996 19% 22,613

Average Order $39.27 1% $39.72

Sales per Visitor Session

$1.00 -23% $0.77

Yearly Sales

YTD / Last YR YTD

May 2006 %! Apr 2007 %! May 2007

Sales (Net of Shipping)

$552,285 9% $569,687 6% $601,819

Regular Refills % of Total Sales

54% -5% 52% 0% 52%

Customer Count/ New Orders

3,986 16% 3,673 26% 4,638

Average Order $39.40 3% $42.30 -4% $40.64

Sales per Visitor Session

$1.06 -21% $0.98 -14% $0.84

Monthly Sales

Current / Last MOCurrent / Last YR MO

$240K

$480K

$720K

$960K

$1,200K

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

$560K$514K

$540K

$647K $663K

$910K

$989K

$583K

$511K$536K

$570K$602K

Sales Sales from 1 Year-Ago

KEY FIGURES

21%Increase in

Sales from

2006 YTD

6%Increase in

Sales from

Apr-06

Sales (in Thousands of Dollars)

38MTotal Page

Views in

YTD 2007

19%Increase in

New Orders

from YTD

2006

analytics

Dunkin' Donuts

Projects for March 2007

ProjectHours

Estimate Launch Description

Database Server Move 4 MQ Agent Research

Implement Phase 1 of Business Requirements 15 ASAP Adding $100 cap on U.S. Mail Orders & Generic Site Messaging

Shopping Cart Issue 8 ASAP Find fix for all items showing up under "Suggeted Items"

Digex Maintenance 8 Ongoing Ongoing

Comprehensive Shipping Changes 20 TBD Completion of 2 lingering issues regarding US Mail Options/ P.O. Box

Free Iced Coffee Day Emails 16 27-Mar Design/Deploy two emails

Free Iced Coffee Day Graphics/Detail Page 12 27-Mar Main Feature Graphic, Store Locator Graphic & Detail page

Admin Tool Performance Issues 10 Ongoing Debugging

Dashboard Report 15 Ongoing Snap shot of metrics and sales numbers: weekly and monthly

Other Fixes/Issues 5 Ongoing Customer Issues, other small issues

Weekly Status Calls/Communication/Planning 13 Tuesdays 5 status calls with an avg. of 2 participants from Mnet, future project lists/planning

Nutrition/Small Site Updates 8 Ongoing Nutrition & other small updates

TOTAL HOURS 134

Dunkin' Donuts

Detailed Hours Report for January 2007

ProjectHours

Estimate Launch Description

AS400 Migration 3 TBD Support/Testing

JetBlue Side Bar Graphic 5 7-Jan Design/Deploy side bar grahpic for JetBlue

U.S. Ski Team Graphics & Detail Page 17 10-Jan 2 Large side feature graphics, store finder graphic and detail page

Franchising Updates 4 12-Jan Updating copy, sidebar graphic on DD.com

Homepage Updates 8 18-Jan Remove Holiday graphics, update logos & background

Contests & Promos Page Update 4 22-Jan New Use It Win It graphic, remove all old promos

Scholarship America Detail Pages 6 28-Jan Update & Deploy Scholarship America Detail page

WCFY Homepage Graphic 5 Design/Deploy grahpic

Update company info page 1 Copy update

Spelling Errors & Shipping Confirmation Emails 4 Fixing spelling errors/updating copy on confirmation emails, remove copy re: ship date

Ship Date Error - Order Fixes 3

Final Budget Order Processing 4 9-Jan Final Round of Budget orders, unsettled orders/Restart windows service

Refund Process Change/Order Adjustments 12 1-Feb Assisting with the Refund Process Project, call/communication, testing

DD.com Biz Requirments Audit 4 6-Feb Report detailing how DD.com handles shipping and order business rules

USPS Parcel Post Recap and Report 3 31-Jan Report detailing the impact of the discontinuation of USPS Parcel Post Shipping Method

Admin Tool Performance Issues 2 Ongoing Admin tool performance is slower than normal

Maple Cheddar Sandwich 10 28-Jan Design/Develop Detail page and supporting graphics

Dashboard Reports 14 Ongoing Snap shot of metrics and sales numbers: weekly and monthly

Other Fixes/Issues 15 Ongoing Customer Issues, other small issues , sever/application maintenance

Weekly Status Calls/Communication/Planning 18 Tuesdays 5 status calls with an avg. of 2 participants from Mnet, future project lists/planning

Nutrition/Small Site Updates 8 Ongoing Nutrition & other small updates

TOTAL HOURS 150

planning

email

web

Online Business Marketing

✤ Confusing number of marketing venues increases day-by-day

✤ Test and Learn - exhausting and labor intensive but use it to prove a business model that fits your budget

✤ The Facebook Effect -critical for consumer-facing companies

✤ “Long Tails” have opportunity for small and niche businesses especially B-to-B

Online Business Marketing

✤ Confusing number of marketing venues increases day-by-day

✤ Test and Learn - exhausting and labor intensive but use it to prove a business model that fits your budget

✤ The Facebook Effect -critical for consumer-facing companies

✤ “Long Tails” have opportunity for small and niche businesses especially B-to-B

Online Business Marketing

✤ Confusing number of marketing venues increases day-by-day

✤ Test and Learn - exhausting and labor intensive but use it to prove a business model that fits your budget

✤ The Facebook Effect -critical for consumer-facing companies

✤ “Long Tails” have opportunity for small and niche businesses especially B-to-B

Case Study: Barrington Outfitters

✤ 25 year old retail business with no website

✤ $0 - $14K in online sales for December, 2010

✤ “Instant” Commerce - BigCommerce Store with pre-made template

✤ Email blasts to 750 notebook signers generated 80% customers

✤ KEY TO SUCCESS: Established retail business - email current customers. Carried “high demand” brands like Ugg.

Case Study: Barrington Outfitters

✤ 25 year old retail business with no website

✤ $0 - $14K in online sales

✤ “Instant” Commerce - BigCommerce Store with pre-made template

✤ Email blasts to 750 notebook signers generated 80% customers

Case Study: Cloudveil

✤ Owners purchased a niche brand for low cash down including customer base of 4K

✤ Reduced cost of online platform / kept branding elements / lowered cost of online biz ops

✤ Online sales increased from $0K - $1.6mm on total e-commerce investment of $100K

✤ Key to Success: Bought niche brand cheap / kept development costs and operating costs to a minimum using SaaS products

Case Study: Cloudveil

✤ Owners purchased a niche brand for low cash down including customer base of 4K

✤ Reduced cost of online platform / kept branding elements / lowered cost of online biz ops

✤ Online sales increased from $0K - $1.6mm on total e-commerce investment of $100K

Case Study: Poliquin International

✤ Small to medium business growth online in 16 months

✤ Fitness & Nutrition Supplements

✤ B-to-B and B-to-C Components

✤ Online sales increased from $68K - $650K PER MONTH in 16 months

✤ Key to Success: RELENTLESS content creation and social engagement

Case Study: Poliquin International

✤ Small to medium business growth online in 16 months

✤ Fitness & Nutrition Supplements

✤ B-to-B and B-to-C Components

✤ Online sales increased from $68K - $650K PER MONTH in 16 months

Summary: Key Success Factors

✤ Pick a business carefully, do your research, consider purchase or partnership. The online world is more crowded than the offline world

✤ Expose the “Iceberg” and develop a plan for product fulfillment, order management, customer service BEFORE you design your site

✤ Building the business almost always requires building an “ecosystem” of website, Facebook, Twitter, and blogging updates - creating and sharing content on a regular, timely basis