Show Me the Money E-commerce in the arts Hans de Kretser

Show Me the Money E-commerce in the arts Hans de Kretser

The total value of UK internet sales by businesses reached £103.3 billion [ONS e-commerce survey, October 2006 for the previous year]

The value of goods bought on the internet this Christmas jumped by 50% to over £7bn for the 10 weeks up to Christmas [The Independent, December 2006]

Ticketmaster.co.uk is the 18 th most popular online retailer in the UK [Source: IMRG-Hitwise Hot Shops List, November 2006]

Online now accounts for 10% of all retail sales in the UK, compared to just 0.5% in [IMRG via E-Consultancy Blog, January 2007]

67% of internet users have bought online [BMRB internet monitor November 2006]

65% of internet users believe using credit cards online is safe [BMRB internet monitor November 2006]

£629 is the average amount spent online per user in last six months [BMRB internet monitor November 2006]

Top types of sites visited A site where you can buy a product or a service 20.46m Map/Direction Site 17.82m Local Info Services 15.97m Weather Sites 11.97m Local Government/council 11.81m Price Comparison Sites 11.59m Education Sites 11.58m Auction Sites 11.45m Music Sites 11.32m Personal Finance Sites 9.46m

UK shoppers make more purchases online than in other European countries [emarketer.com January 2007]

…and spend more then other Europeans [Forrester research, July 2006]

Half the UK population makes money by selling online, making £8.5 billion in the last year, an average of £341 a head. [Orange Broadband, 2006]

54% of UK residents are using online sales websites to make extra funds. [Orange Broadband, 2006]

12% of people over the age of 30 claim to have made in excess of £500 by selling online. [Orange Broadband, 2006]

Of 1,000 retailers, two-thirds (69%) of UK retailers are missing out on potential revenues by not offering their goods or services online. [Source: Barclaycard via E-Consultancy Blog, December 2006]

23% claimed the cost of setting up online was a major barrier 13% were put off by the technical knowledge required to set up a website

Three-quarters of the UK population shop online. [Source: SciVisum (via Revolution), September 2006]

57% cited speed as the main reason for buying online [Source: SciVisum (via Revolution), September 2006]

But 78% of e-shoppers have turned off a computer out of frustration with site performance [Source: SciVisum (via Revolution), September 2006]

47% said that sites that crashed mid- transaction were a major cause of web rage [Source: SciVisum (via Revolution), September 2006]

54% were frustrated by the inability to ask questions over the phone, while others cited usability issues such as complicated registration (47%), inability to find information (46%) and inability to amend orders (45%). [Source: SciVisum (via Revolution), September 2006]

Show Me the Money E-commerce in the arts Hans de Kretser

Content An overview and key considerations Regulations Making it work – design in practice Stepping up What the future has in store

Online Ticketing

Online Multi-buy

Online Membership

Online Memberships Tate 25% memberships online New online relationships

Paperless direct debit

Online gift tokens

Online Merchandise

Online Donations

Panto Donations £1 to each booking Option to remove Gift Aid Cinderella £5,364 Peter Pan £1,625 Children’s Hospital Fund Online Donations

Ancillary services

Online Auctions

Mobile Technology

Phone tones

Payment options Offline processed payments Credit Card payments –Third party such (e.g. WorldPay) –Direct with bank Mobile –Stored details (e.g PayPal) –Micro-payments

Offline payment

Payment Service Providers

WorldPay Fees –£200 set up –£30 per month –£ £0.25 per transaction Other providers include SecPay and securetrading

Payment Service Providers

Through your bank Rigorous set up Separate merchant accounts Impose higher percentage commissions Banks adopt customer side if they query delivery leading to chargebacks

M-payment Multi-channel Micro-payment M-wallet Sim card pre pay

Online Ticketing Roger Tomlinson Outlines 5 options

Online Ticketing 1 Allocation to ticket agency e.g. Keith Prowse No connection to live box office data

Online Ticketing 2 Allocation to an own branded online selling tool e.g ts.com No connection to live box office data

Online Ticketing 3 Combined Ticketing Systems/ Service Supplier links to their online ticketing e.g TicketMaster Connection to live box office data

Online Ticketing 4 Supplied Internet Gateway e.g Tickets.com Connection to live box office data

Online Ticketing 5 Own Internet Sales Tool e.g ENTA Live Connection to live box office data

Online Ticketing Real Time ticketing also allows: Mobile phone – SMS ticketing Interactive voice response Other sales outlets Other venues

Online Ticketing Reasons for going online Reach new audiences Extend sales outlets and opening hours Data capture Reduce pressure on box office Convenience to customers Reduce overheads Not to be left behind Increase income

Online stores

Online Stores 1 Process offline e.g. Kenwright.com No connection to stock system – doesn’t handle payment

Online Stores 2 Sell through another website e.g. Amazon.com/ ebay Easy to set up – handles payment no branding

Online Stores 3 Sell through a payment service provider e.g. Worldpay Can integrate catalogue with site design

Online Stores 4 Dedicated shop system e.g. ShopCreator Stock control, own payment

Online Stores 5 Bespoke shop system e.g. with developer Integrated with other services such as online ticketing, Own payment

Rules and Regulations E-commerce Regulations came into force in August 2002 Covers selling via internet, and sms

Rules and Regulations Include on site your business' name geographic address company registration details address VAT details professional bodies

Rules and Regulations Allows customers to go back and correct mistakes before the order is placed

Rules and Regulations Acknowledge receipt without undue delay

Rules and Regulations Consumer Protection (Distance Selling) Regulations 2000 –Clear information about sale –Provided in writing (e.g ) –Cooling off period to cancel

Rules and Regulations Electronic Commerce Directive –Clearly identify commercial communications –Outline steps for contract to be concluded

Rules and Regulations Sales of Goods Act –Products fit for sale Trades Description Act –Products exactly as described

Rules and Regulations Privacy and Data protection recommended practice –Allow to accept and proceed or decline or proceed –Placed at bottom of policy

Terms and Conditions Show terms and conditions Ideally acknowledge before purchase

Break

Designs that pay Reasons for shopping online: Ease of use - 59% Low prices - 32% e-commerce times January 2006, Keynotes systems

Designs that pay Essential principles of product page design Advice from Jacob Nielsen – usability expert

Designs that pay Simplicity Try not to over crowd the page –Name and description –Product image –Price –How to buy –Variations

Barbican product page

Natural History Museum

Designs that pay Dimensional Navigation “if…there are certain criteria that people use to buy, built it into your navigation”

Wycombe Swan

Carmina Burana

Wycombe Swan

Science Museum

Designs that pay Site search –Becoming more significant as search facilities improve

Designs that pay Information Rich Product pages should be simple, but they should offer access to a complete source of information Layer information

Sadler’s Wells

Designs that pay Expert opinions Important that reviews stand up as independent

Spiegel

Designs that pay

The way to check-out Allow all related options to be selected before item is added to shopping cart

Barbican

Designs that pay Product/event page essentials –Title –Description –Photo –Dates if performances, availability/delivery time if products –Links to t+c’s privacy policy, warranty –A big BUY button

Designs that pay The Seating Plan

Designs that pay The Seating Plan

Designs that pay The Seating Plan

Designs that pay The Seating Plan

Designs that pay Log-in and registration Start or finish? As simple as possible

Goh

Sadler’s Wells

Sadler’s login

Designs that pay Southbank Centre

Designs that pay

Only a small proportion of users who start e-commerce transactions actually complete them And these are often a small proportion the overall visitors (Roger Tomplinson, A practical guide to developing and managing websites)

Designs that pay Minimise clicks and pages

Designs that pay Make the e-commerce pages obvious

Designs that pay Don’t make users repeat actions –Identifying dates on the website then again when they want to book online –Making people have to go through the whole process for each event/product

Designs that pay Speed is essential –Page design –Database calls

Designs that pay Transactions require interaction –Keep required information to a minimum –Keep it simple

Stepping up How organisations have made a difference

Stepping up Self selecting Seating plans When given the choice 84% prefer to automatic selection (Sadler’s Wells) Overnight rise in online sales

Stepping Up Improving the customer journey Barbican new website improved online sales from average of 35% to 55%-60% sales by improving customer journey

Stepping Up “We also send an automated to customer who “dropped off” mid journey of booking tickets – to ask them if we can assist.” Sigal Hachili - Barbican

Stepping up Using web traffic analysis tools –Sadler’s Wells use –Track user behaviour Shows bought direct from s What stage they leave the shopping basket Customers who bought x also bought…

Stepping Up Marketing –Print – –Search Engine Optimisation –Paid for Search engines

Stepping Up The Home Page –47% land on a home page Allow users to navigate to different sections Offer different routes to purchase decisions

Live Nation

The future in store? Web 2.0 to Ecommerce 2.0 –Second generation of web-based services — such as social networking sites, wikis, and communication tools — that emphasize online collaboration and sharing among users.

The Future in store? Drag and drop Shopping Baskets

The Future in store? Prompted Search

The Future in store?

Unbundled Services

The Future in store? Mashups

Show Me the Money E-commerce in the arts Hans de Kretser

Show Me the Money E-commerce in the arts Hans de Kretser