1. E-Commerce Final Exam ReviewThis is to really help me
2. Customer RelationshipManagement
3. Customer Relationship Management In e-business context, is
the use of technologyto establish, develop, maintain and
optimizerelationships with customers byunderstanding customers
needs and desires. Marketing could use CRM to answer thefollowing
questions: Who are our customers? What do these customers really
want from us? What advertising methods are most effective? Which
channels are likely to be most successful ingaining repeat
business?
4. Up-Selling and Cross-Selling Sales will benefit from CRM by
providingsales representatives with better informationthat they can
use to up-sell or cross-sellproducts and services: Up-selling: is
the process of encouragingcustomers to purchase higher-priced
products orservices. Cross-selling: is encouraging customers
topurchase complementary or additional products orservices from the
firm.
5. Process of CRM Data capture Data is captured andstored :
Data warehouse: a centraldata repository utilized toorganize,
store, analyze,and report upon data fordecision-making purposes.
Data mart: a data repositorythat is dedicated to specificuser
groups and is oftenintegrated into the datawarehouse. Data Analysis
Also called CustomerIntelligence Customer intelligence is theuse of
CRM applications toexplore data to identifyrelevant
customerinformation. Strategic Decision Making Data analysis
oftenidentifies areas requiringchange e.g.
cost-reductioninitiatives or product orservice delivery
Implementation This may involve changein the methods by
whichinformation is delivered tocustomers, modification ofmarketing
campaigns,revisions to the onlinestore, or numerous
otherpossibilities.
6. CRM Goals The overall goal of CRM should be to
improvecustomer relationships by providing better service,improved
sales efforts, and reduced marketing costs. Marketing goals
Improved marketing planning, sales forecasting,competitor
intelligence, trend analysis and performanceanalysis. Sales goals
Sales Force Automation (SFA) is the process ofsimplifying sales in
the field and the integration of salesactivity into the corporate
information structure. Some of the leading CRM application
providers haveevolved from SFA providers in the past. Service goals
Customer Service Representatives have the capability tobecome
effective sales contacts through CRMtechnology.
7. Concerns of CRM Political and Cultural Concerns Success
requires strong buy-in from management. Ownership of customer
touch-points is always anissue. Changes with employees adjusting to
their newresponsibilities, compensation management andother
cultural changes need to be well attended to. Technological
Concerns Need to use middleware and EAI tools for properintegration
Integration of numerous touch points including useof computer
telephony integration (CTI). CTI allows telephone systems to
integrate with computersystems to aid in customer service and data
capture
8. Implementation of CRM Planning Process Redesign Integration
Education Analysis Reporting Analyzing Predicting Change
implementation
9. Business IntelligenceBI is about providing the right data at
the righttime to the right people so that they can take theright
decisions Nic Smith with Microsoft BI Solutions Marketing
10. What is BI? BI enables businesses to capture,
analyze,interpret, and report on data thus creatingvaluable
information for the enterprise. The concepts of BI have emerged
from data-miningtechniques, decision support systems,data
warehousing, knowledge management andother business tools that have
been used foryears.
11. Benefits of BI Some of the key benefits of business
intelligenceinclude: continuous rather than periodic
management-opportunityto manage based on a continuous flow
ofinformation that is current and exact information can be
correlated with other data at anytime, all the time. improved
management of diverse businessfunctions- including marketing, HR,
and finance/at thesame time. improved collaboration- enables
different divisions toshare common data resources. can produce a
collaborative work culture amongemployees. improved understanding
of customers- reactions ofcustomers to prices, products, and
promotions. can lead to action plans to meet or exceed their
12. BI Functions Data Integration and Organization Internal
data sources include ERP systems, CRM systems,e-procurement
systems, legacy systems, and call centres. External data sources
include supply-chain partners,industry information regarding
competitors, or other externalinformation such as economic
indicators BI applications integrate all data sources in a
manneroptimized for reporting and analysis. Data warehouses exists
outside of online transaction-processing(OLTP) system or ERP, and
is dedicated tothe analytical aspects of the organization. OLTP is
a program that facilitates and manages
transaction-orientedapplications, typically for data entry and
retrievaltransactions across a network. Data in a BI system is
structured around metadata. Metadata is a structured definition of
data; it is data about data The integration of data occurs through
a number ofmethods, as the data warehouse consolidates data
fromnumerous sources using the process of Extraction,Transformation
and Loading (ETL). ETL is the process of gathering data from a
system such as anERP system, which can be simplified and stored
within the datawarehouse.
13. BI Functions Contd Data Analysis Levels of data analysis
may range from basic reportingupon pre-configured data cubes to
ad-hoc queries ordata mining. Data cubes are multi-dimensional
database structures that allow quickdrill-down and reformatting of
data. BI allows users to have access to reports andinformation that
previously resided only in theinformation systems group. Data
analysis and reporting range from standardreports through to data
mining. Standard reports Ad-hoc query. The ability for users to
generate any type of query orreport they wish within the system.
OLAP Analysis. Provides the ability for users to perform
detailed,summary or trend analysis on data and allows for
drill-down into thatdata. Data mining. The analysis of data for
relationships that may not havepreviously been known.
14. BI Functions Contd Data Integration and Organization
Internal data sources include ERP systems, CRMsystems, eprocurement
systems, legacy systems,and call centres. External data sources
include supply-chainpartners, industry information
regardingcompetitors, or other external information such aseconomic
indicators BI applications integrate all data sources in amanner
optimized for reporting and analysis.
15. BI Performance Analysis Key Performance Indicators
important standards that a company measures itsperformance against
in relation to goals, competitors, and theindustry. Examples of
KPIs include market share percentages, revenuegrowth, and quality
deviations. Balanced Scorecard Multi-dimensional measurement tool
aimed at capturing avariety of performance indicators including
performancemetrics on customers, internal processes, learning
andgrowth, and financial performance. Dissemination communicating
on a timely basis Collaboration share info with entire supply
chain
16. Technologies of BI Core technologies. Technologies that
provide the basic infrastructurefor business intelligence: such as
the use ofrelational databases. A relational database is one that
uses numerous tables and canrelate fields or tables within the
database to one another, and caneasily be reorganized or extended.
Enabling technologies. Technologies that provide the ability of the
BIapplications to interact and perform tasks within thecore
technologies, such as the data warehouse.E.g. OLAP, SQL, XML BI
Solutions Technologies that provide the reporting and analysisof
data at the client or user end of the process.
17. Implementing BI Planning phase Critical SuccessFactors:
Ease of use Scalability Flexibility Performance Data Quality
Security Architectural Design Database design System architecture
Execution Top managementcommitment throughoutthe project to
ensureadequate resources arededicated and to gainemployee buy-in.
Team approach to theentire project isnecessary to allowdepartmental
input andevaluation of the projectplanning andimplementation. make
sure the systemcovers the goals set outin the planning stage
Planning must be verydetailed and wellthought out Levels of detail
requiredneed to be considered
18. Implementing BI Contd Maintenance and Change Management.
Design and implementation of a BI system must berevised as new user
requirements and newtechnologies come along. As technologies such
as ERP systems, databases,and the internet continue to evolve, BI
will need tokeep pace if it is to continue to provide value to
thefirm. Flexible systems are needed to enable the BIimplementation
to adapt as the organizationsneeds change. The companys BI systems
will need to be modifiedto incorporate changes quickly and
effectively.
19. E-Marketing & E-Advertising
20. What is E-Marketing? Emarketing: Utilization of the
internet and electronic technologiesto assist in the creation,
implementation andevaluation of marketing strategy Online research,
internet advertising, onlineconsumer behaviour Closely related to
CRM and BI Useful in online branding. A brand is a name, term,
sign, symbol, design, or acombination of these attributes that is
used to differentiate aproduct or service from its competitors. The
objective of a brand is to: Strengthen brand name Increase net
traffic Build customer loyalty Encourage repeat purchases
21. Strategy Creation Development of an e-marketing strategy
requires ananalysis of competition and other environmentalfactors.
Research process should provide management withthe information
necessary to define the segments intheir market. A market segment
is a group of customers who sharecommon needs and/or
characteristics the selling firm may beable to satisfy. Online
Research The internet offers a real opportunity to carry
outresearch to develop marketing strategies. An abundance of
information is available dealing withdemographic trends, social and
cultural climates,competition, industry statistics, technological
innovation,economics, legal data, and political environments.
Secondary data are data that have not been developedspecifically
for the task at hand, but that may be usefulfor decision
making.
22. Strategy Creation Contd Methods of collecting primary data:
Surveys Experiments Focus Groups Data collection methods provide
data for usein: User behaviour analysis click-stream analysis
Cookies user profiles Internet usage Shopping Patterns Email usage
Advertising planning. Strategy creation shouldconclude with a
comprehensive e-marketingplan.
23. Implementation Website Design Brochureware phase. An early
stage of the internets development, wherecommercial enterprises
primarily put existing marketingbrochures in digital format
Interactive phase. A stage of the internets development when
websites beganto allow two-way communication through e-mail and
webforms Personalization phase. A stage in the internets
development when websites beganto develop one-to-one marketing
techniques through theuse of cookies and other tracking tools.
Personalizationincreases site stickiness. Obtainan good domain
name:The internet offers the opportunity for businesses to
24. Online Advertising The evolution of website design and
onlinetechnologies has led to improvements in thecapabilities for
online advertising. Banner ads are graphical images, which
mayinclude interactive applications, that appearon websites to
attract users to click-through toother websites or sections of the
presentwebsite. Buttons are similar to banners and could beused to
submit data on web-pages or as ameans of clicking through to
anotherwebpage.
25. Online Advertising Contd The cost of banner advertising
varies; depending onthe location of the advertisement, the
hostcompany, and any barter deals that are in place. Costs of
advertising are often measured in cost perthousand (CPM)
impressions. Charges are set for each thousand users who visitthe
site or see an advertisement. Interstitials are web-based windows
that pop up asa user enters an internet site, aiming to catch
theusers attention. Also known as daughter windows, commonlypromote
a specific product of a site or aim to gathersurvey data.
Superstitials: Internet advertisement spots thatload into a users
browser while the internetconnection is idle and then launch as a
daughterwindow showing a short, TV-like advertisement.
26. Online Advertising Contd Email is an important vehicle for
corporateadvertising and marketing campaigns, but itshould be used
very carefully. Interactive tools: Interactive ads provide
advertisers with numerouscapabilities such as branding, interactive
selling,and other advertising techniques in numerousformats. Spam
is the name given to unsolicited email sentin an attempt to gain
commercial advantage. Therising problem with spam was created by
therelative ease of gathering large numbers of emailaddresses over
the internet through newsgroups,chat sites, and other
websites.
27. Online Advertising Contd Affiliate Programs These are
agreements between website operators wherebydelivery of customers
or prospective customers to anothercompanys site results in
compensation becoming due. Partnerships Can be created to increase
traffic or to target specific productsand services to a market
segment. Promotions Sales Promotion tools Points programs PC
Financial Coupons Rogers, Staples Free samples/trials
Globeinvestor.com Online focus groups by invitation
Contests/sweepstakes - Orbitz Public Relations This is the activity
of creating goodwill or positive company image.
28. Digitized Word of Mouth & Pricing Mechanisms for
recording feedback about ecommercesites, products and market
participants, and sharing suchfeedback with others: The internet
offers important new possibilities for digitizedword of mouth
advertising and promotion, and for buildingtrust in ecommerce sites
through formal online feedbackmechanisms. Marketers have started to
pay bloggers to promote certainproducts in their blogs, thereby
creating word of mouth forthose products. Pricing The internet
offers a new medium within businesses mustestablish pricing
policies that capture potential sales andmaximize profits. A solid
pricing strategy can lead to substantially improvedprofitability
and market share.
29. Metrics
30. What Are Metrics? What areBenefits? Metrics are used to
measure e-businessperformance range from the number ofwebsite hits,
to the proportion of customervisits leading to sales, and
ultimatelyprofitability. Benefits of Metrics: Improving
understanding of business model Helping to communicate corporate
strategy Motivating performance Analyzing actual performance
Increasing accountability
32. Limitations of Metrics Metrics can quickly become
irrelevant ormisleading when strategies change rapidly. Measurement
can be costly, consuming moneyand the time of key personnel. Online
measurements are vulnerable totampering by insiders or outsiders,
hence datasources require strict security. Acceptance due to
differences between softmetrics and hard data. Some metrics
requiresubjectivity.
33. What to Measure? Traffic Metrics General measurements of
sites activity Hits: A request of an element (page, graphics
element etc.)from the Web Server Page Views: A full page request by
a single user, includingall pages elements Ad Views, Ad Impressions
or Banner Impressions: # oftimes a page with a banner ad is viewed.
Visit/User Session: A stream of page requests from asingle user
constitutes a visit. Unique Visitors: Non-repeating visitors in a
specifictimeframe
34. What to Measure Contd Marketing Metrics Referrer Analysis
Traffic Breakdown by Source (who is visiting?) Log file contains
information about last visited URL Top referrer URLs indicate where
traffic is coming from Useful to measure effectiveness of
advertisingcampaigns In case of search engines, URL can contain
searchkeywords as parameters Location Analysis Breakdown by
geographical origin Customer Profile Analysis. Visitors/ shoppers
breakdown by profile attribute Explicit: Information surrendered by
user when subscribing, making apurchase, completing a survey
form:Name, Address, Marital Status Implicit: Information inferred
from the users actions and/or purchasehistory: Favorite Color, Age
group, Preferred Topics.
35. What to Measure Contd Financial Metrics Revenues Sales
revenue from products and services, advertisingrevenue, affiliate
commission and database marketing Expenses Fixed costs like
infrastructure and operating costs Operating costs like site
maintenance,advertising/promotion, marketing and operations
Marketing costs Returns on Investment
36. What to Measure Contd Other Performance Metrics Internal
and external (partners) e-businessmetrics Multi-dimensional
scorecards Internal Scorecard External Scorecard. Identifies
criteria in atleast four categories: Ease of Use: demonstrations of
functionality; simplicity;design and navigation. Customer
Confidence: availability, depth, and breadth ofcustomer service
options. Online Resources: ability to look up account information
foreach product. Relationship Services: online help, tutorials,
glossary, andFAQs.
37. Sources of Information Click-Stream Analysis A method by
which a users path through a website can be tracked andanalyzed
Cookies Small text files stored by a website on individual
computers that allow thesite to track the movements of a visitor.
Electronic Wallets A file that securely stores a users information,
such as name, address,credit card number, and ship-to-address, for
frequent use in executingecommerce transactions. Web Server log
Files Files stored on a web server containing details of every
action that hasoccurred. Log file analysis is the process of
analyzing information regarding themovements of users throughout a
site based upon data captured in serverlog files. Web Bugs (clear
GIFs) Image files embedded into a webpage that can track user
movementswithout the user knowing.
38. Privacy, Legal & Taxation Issues
39. What are some of the issues? Legal and tax issues of Canada
and othercountries were not designed to handleecommerce issues.
Napster brought ecommerce (intellectualproperty) issues to the
fore. Technology improvements have given birth tointernet privacy
concerns Other issues include jurisdictional, e-contract
,enforcement, liability and unfair competition
40. Internet Privacy Medical Information Personal information
can easily gathered on the internet Increasing privacy concerns
have led to the development oflegislation within Canada and abroad
The Personal Information Protection and Electronic DocumentsAct
(PIPEDA) is a Canadian legislation that has provided
privacyprotection for personal information since coming into full
effecton January 1, 2004. Major component of PIPEDA are: Legal
basis for electronic service delivery Recognizes secure electronic
signatures Clarifies status of electronic records Recognizes the
status of electronic statutes and regulations Amends related
legislation, e.g. evidence act Protect any personal information
that is collected PIPEDA is designed to protect personal
information.
41. Internet Privacy Contd Personal information: is defined
within the act asinformation that could identify an individual and
couldpotentially be used to discriminate against that personor
invade his or her privacy, such as: name, age, weight, height
medical records income, purchases, and spending habits race, ethnic
origin, and colour blood type, DNA code, fingerprints marital
status and religion education home address and phone number Ensure
that individuals privacy is respected and notused inappropriately.
Misuse can lead to inappropriate business practices,identity theft,
and discrimination, and is therefore ofcritical importance.
42. Intellectual Property Intellectual property. This is a
creation of the mind such as aninvention, artistic work, symbol,
name, image, or design used incommerce. Made up primarily of:
Metatags Trademarks belong to specific companies, not free to
beused. Trademark: A distinguishable feature such as a word,
symbol,picture, logo, or design that can be used to identify the
products orservices of a specific individual or organization.
Copyrights- a category of intellectual property that
includesliterary and artistic works such as books, poems, films,
andmusical works. The major means by which copyright can be
violated includeplagiarism, piracy, bootlegging, and
counterfeiting. Results inthe inappropriate use of anothers work
for commercial or otherpurposes. Digital Music Sharing Creation of
a technology that could easily allow millions of individuals
toshare and distribute copyrighted music files over the internet.
Collectives an organization that administers the common rights of
several copyrightowners The collective acts for its members to
grant permission to use themembers works, and sets the conditions
for that use. Example: a ring tone is sufficient to warrant
protection under copyright.
43. Intellectual Property Contd Media Neutrality Deep Linking:
The creation of a link on one website to aspecific part or page
(not the homepage) of another website. Website framing: The use of
HTML and browser technology tosplit a page into segments, which is
useful for facilitating ease ofuse and building impressive
websites. Patents: documents issued by the government that grant
aninventor or patent owner the right to make and use an invention
for20 years after the patent is filed. The issue of patents has
recently become a concern forecommerce and e-business because
processes are coveredas inventions that may be protected by
patents. One of the most recognized examples of a business
methodpatent is Amazon.coms 1-Click process of its online
purchasingsystem, which allows users to easily make purchases
byspeeding up the checkout process. Other companies may be sued if
they set up the same type ofonline check-out system.
44. E-Contracts Legally binding contracts require 3 parts offer
acceptance consideration ($ exchanged) These three parts are
challenging to confirm when parts ofthe process are done digitally
e-contracts More and more e-retailers require users to read the
termsof a contract and click on I agree before they can go tonext
step Assents of Users Shrink-wrap agreements refer to the practice
ofindicating on the outside of shrink-wrapped softwarepackaging
that the use of the software product is subjectto license terms.
Click-wrap agreements are the online equivalent of thestandard
agreements included within the shrink-wrap ofsoftware bought in
physical locations.
45. Taxation Taxation in the global economy can be verycomplex.
Where a business is located for tax purposes-knownas permanent
establishment inCanada or physical presence in the UnitedStates.
The permanent establishment of an online companycan be very
difficult to determine, since it could be: the location of the
vendors head office the location of the websites ISP the physical
location of the server or some other location such as the branch
closest tothe customer. Results in extreme difficulties in
determiningthe appropriateness of collecting incometaxes, and
proper sales taxes.
46. E-Commerce & Small Business
47. Small Business Intro The potential to reach new markets,
reduce costsof operations and compete against largercompetitors
brought the potential of ecommerceto the forefront in the 1990s and
early 2000s. Much of the job growth in Canada can beattributed to
small businesses Larger organizations and many high growth
firmshave shifted their focus from the B2C market tothe B2B market,
and left a massive opportunityfor the right individuals wishing to
launchebusinesses in the B2C arena.
48. Opportunities Marketing Depending on business can be
critical Customer support Technology makes our business available
24/7 One of the main tools that will reduce routine questions over
thephone is a frequently asked questions (FAQ) page on the web.
Market intelligence As market expands need additional details
Procurement Small businesses save money on procurement of virtually
everythingthey purchase, turning those savings into lower prices
and increasedmarket share. Operations Simplify processes
electronically Sales transactions Expanding the market Public
relations Reach your audience at reasonable cost
49. Opportunities Contd Employee Retention and Morale Online
training programs boost knowledge/ moreproductive. Use of
e-business technologies help employees feelchallenged in a small
company. Potential Benefits access to new markets improved customer
responsiveness increased flexibility improved profits increased
innovation better managed resources
50. Challenges Technological Most small e-businesseswill lack
internal ITexpertise Need to ensure adequatesupport available
eitherinternally or externally Valuable for internalexpertise to be
gainedthrough training wherepossible Financial Large web strategies
andother IT initiatives can bevery costly Need to determine
trueneeds not just the wants Develop systems that canbe scaled up
and expanded Organizational Small businesses will alsoface change
managementissues Owner/manager needs to bepromoter ofe-business
Provide adequate trainingand support Operational Volume of data can
be smalland yield limited results fromanalysis - need to
determinecase by case Ability to integrate can belimited if back
office notintegrated Support for growth must beavailable