BusinesstoConsumer Presented by Stacey Riegel Spring 2003 BusinesstoConsumer

Business-to-Consumer Presented by Stacey Riegel Spring 2003

Business-to-Consumer • • Defined The Business Side The Customer The Business/Customer Relationship B 2 C and the Real World Exercise Summary Reading List

What is Business-to-Consumer? • • • B 2 C E-commerce E-business

E-tailing • • B 2 C = 10% B 2 B = 90%

The Business Side • • Benefits Vs. Challenges The Market Needs of the Consumer Continuous Research

Benefits to B 2 C • • • 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 B 2 C 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 Web. Trust (www. cpawebtrust. org) Veri. Sign (www. verisign. com) TRUSTe (www. TRUSTe. org)

B 2 C – 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 B 2 C “What’s 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. 2. 3. 4. Disclose all costs Show user’s what’s in their carts Allow customers to change orders Save cart contents for return visits

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

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 Mc. Duffie; Bruce Runyan; L Murphy Smith; vol 17, issue 6, pp. 17 -23 Failure to Assure Security Seen Behind Slow Growth of Online Shopping; Business. World; 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; e. Company Now; Dec. 2000; Stacy Perman Operations Management 4 th Edition; Roberta S. Rusell, Bernard W. Taylor III Land’s End: IBM technology a perfect fit for its B 2 B solution; an IDC e-business case study; www. 3. ibm. com