Chapter 4 Customer Interface e-commerce

CAS-COD-Prez-Date-CTL Confidential 2 Overview of Customer Interface –Technology-mediated customer interface –Shift to “screen-to-face” interface –Types of interfaces available –“Look-and-feel” of the website –Commerce activities –Communities in the business model –7Cs framework

CAS-COD-Prez-Date-CTL Confidential 3 Questions  What are the seven design elements to the customer interface?  What are the alternative “look-and-feel” approaches to design?  What are the five content archetypes?  Why be concerned with community?  What are the levers used to customize a site?  What types of communication can a firm maintain with its customer base?  How does a firm connect with other businesses?  What are alternative pricing models of commerce archetypes?

CAS-COD-Prez-Date-CTL Confidential 4 Seven Design Elements  The 7Cs Framework for customer design  Interface is the virtual interface  Worth visiting?  What products or services?  What messages does it communicate: exclusivity, low price, or ease of use?

CAS-COD-Prez-Date-CTL Confidential 5 Definitions and Simple Illustrations Context – aesthetic and functional look and feel Content – digital subject matter such as text, video, audio, graphics Community – interaction between users Customization – tailor itself or be tailored by user Communication – dialogue between site and users Connection – formal linkages between sites Commerce – sale of goods, products services on site

CAS-COD-Prez-Date-CTL Confidential 6 The 7Cs of the Customer Interface Context Site’s layout and design Commerce Site’s capabilities to enable commercial transactions Connection Degree site is linked to other sites Communication The ways sites enable site-to- user communication or two-way communication Customization Site’s ability to self-tailor to different users or to allow users to personalize the site Community The ways sites enable user-to- user communication Content Text, pictures, sound and video that web pages contain

CAS-COD-Prez-Date-CTL Confidential 7 Building Fit and Reinforcement Fit – extent each of 7Cs individually support the business model  Reinforcement – aesthetic context of the site

CAS-COD-Prez-Date-CTL Confidential 8 Fit and Reinforcement of Cs Context Content Community Customization Communication Connection Commerce Business Model Consistent Reinforcement Individually Supporting Fit

CAS-COD-Prez-Date-CTL Confidential 9 Performance of Lands’ End Site

CAS-COD-Prez-Date-CTL Confidential 1010 Look-and-Feel of the Design Context –Look and feel of a screen-to-face customer interface –Includes website, PDA, cell phone

CAS-COD-Prez-Date-CTL Confidential 1 Dimensions to Context Function Organized into sets of pages Provides means to navigate through pages Section breakdown Linking structure Navigation tools Performance dimensions –Speed – site page –Reliability – lack of downtime –Platform independence –Media accessibility – download in various platforms –Usability – navigation ease

CAS-COD-Prez-Date-CTL Confidential 1212 Aesthetic and Tips Aesthetic Color scheme Visual themes Usability Tips and Tricks Quick Easy Search capability Get outside opinion Clear categories Clear product names

CAS-COD-Prez-Date-CTL Confidential 1313 Exhibit 4-4: Form vs. Function — The Design Context Frontier Integrated Aesthetically Dominant HighLow High Low FUNCTION AESTHETIC/ FORM Functionally- Dominant Frontier is gradually moving outward as technology advances

CAS-COD-Prez-Date-CTL Confidential 1414 Aesthetic Example — KMGI.com

CAS-COD-Prez-Date-CTL Confidential 1515 Context archetypes Broad, generic approaches to context design New technologies introduce new techniques, introduce new aesthetics Aesthetically dominant – look-and-feel, high form, low function Functionally dominant – low form, high function Integrated - balance of form and function

CAS-COD-Prez-Date-CTL Confidential 1616 Functional Dominant — Brint.com

CAS-COD-Prez-Date-CTL Confidential 1717 Integrated Approach Example — Patagonia.com

CAS-COD-Prez-Date-CTL Confidential 1818 Point -Counterpoint: Form vs. Function

CAS-COD-Prez-Date-CTL Confidential 1919 Five Content Archetypes  Content Dimensions to Content Offering mix – product, information, and/or services Appeal mix – promotional and communication messaging Multimedia mix – text, audio, image, video, and graphics choices Content type – time-sensitivity

CAS-COD-Prez-Date-CTL Confidential 2020 Content Archetypes Offering Dominant Superstore Category killer Specialty store Information-dominant – information, but may have entertainment Market-dominant – market for buyers and sellers

CAS-COD-Prez-Date-CTL Confidential 2121 A Framework to Understand Offering-Dominating Archetypes Superstore Category Killer Specialty Store NUMBER OF PRODUCT CATEGORIES Multiple Single Narrow Broad DEPTH OF PRODUCT LINE

CAS-COD-Prez-Date-CTL Confidential 2 Superstore Example — Amazon.com

CAS-COD-Prez-Date-CTL Confidential 2323 Category Killer Example — Petsmart.com

CAS-COD-Prez-Date-CTL Confidential 2424 Specialty Store Example — Frontgate.com

CAS-COD-Prez-Date-CTL Confidential 2525 Information Dominant — Business 2.0 (

CAS-COD-Prez-Date-CTL Confidential 2626 Market Dominant Example — PlasticsNet.com

CAS-COD-Prez-Date-CTL Confidential 2727 Drill Down - Content Archetypes vs. Offering Types

CAS-COD-Prez-Date-CTL Confidential 2828 Point-Counterpoint: Is Content King?

CAS-COD-Prez-Date-CTL Confidential 2929 A Community Community –A feeling of membership –Strong sense of involvement –User-to-user communication

CAS-COD-Prez-Date-CTL Confidential 3030 Elements of a community –Cohesion –Effectiveness –Help –Relationship –Language –Self-regulation

CAS-COD-Prez-Date-CTL Confidential 3131 Types of communities –Just friends –Enthusiasts –Friends in need –Players –Traders

CAS-COD-Prez-Date-CTL Confidential 3232 Degree of Member Participation –Passive –Active –Motivated –Caretakers

CAS-COD-Prez-Date-CTL Confidential 3 Member Benefits –Need fulfillment –Inclusion –Mutual influence –Shared emotional experience

CAS-COD-Prez-Date-CTL Confidential 3434 Dimensions of community –Interactive community –Chat –Instant messaging –Message boards –Member-to-member –Noninteractive communication –Public member webpages –Member content

CAS-COD-Prez-Date-CTL Confidential 3535 Communities — Elements, Types, and Benefits Elements of Community Types of Communities Member Outcomes: Participation and Benefits Cohesion Effectiveness Help Relationships Language Self-regulation Just Friends Friends in Need Enthusiasts Players Traders Need Fulfillment Inclusion Mutual Influence Shared Emotional Experiences Degree of Participation

CAS-COD-Prez-Date-CTL Confidential 3636 Community Archetypes –Bazaar – wander but not interact –Theme park – finite number of areas organized by categories and subcategories –Club – highly focused on only one areas of interest, promoting interaction among members –Shrine – highly focused community with minimal interaction –Theatre – focused in area but allows for moderate interaction –Café – focused on common area of interest but provides considerable interaction among members

CAS-COD-Prez-Date-CTL Confidential 3737 Bazaar Example — Games.Yahoo.com

CAS-COD-Prez-Date-CTL Confidential 3838 Theme Park Example — VoxCap.com

CAS-COD-Prez-Date-CTL Confidential 3939 Club Example — Gillette Women’s Cancer Connection

CAS-COD-Prez-Date-CTL Confidential 4040 Shrine Example — The Unofficial Dawson’s Creek Web Site

CAS-COD-Prez-Date-CTL Confidential 4141 Theater Example — iFilm.com

CAS-COD-Prez-Date-CTL Confidential 4242 Cafe Example — Bolt.com

CAS-COD-Prez-Date-CTL Confidential 4343 Drill Down - Focus vs. Interactivity Bazaar Theme Park Mall ShrineTheaterCafe INTERACTIVITY FOCUS Bolt.com VoxCap.com iFilm.com Trace.com Contact Consortium.com Contact Consortium.com Games.yahoo.com Non-equilibrium state: Successfully-managed communities will move toward higher levels of interaction Women’s Cancer Connection Women’s Cancer Connection leonardodicaprio.com

CAS-COD-Prez-Date-CTL Confidential 4 The Levers Used to Customize a Site Customization –Dimensions of customization –Personalization –Log-in registration –Cookies –Personalized accounts –Content and layout configuration –Storage –Agents Tailor by site –Tailoring based on past user behavior –Tailoring based on behavior of other users with similar preferences

CAS-COD-Prez-Date-CTL Confidential 4545 Customization Types –Personalization by user  Consciously articulated  Acted upon preferences –Tailoring by site  Reconfigure past behavior  Reconfigure by other users of similar profiles

CAS-COD-Prez-Date-CTL Confidential 4646 Personalization by User Example — mylook.com

CAS-COD-Prez-Date-CTL Confidential 4747 Tailoring by Site Example - Amazon.com

CAS-COD-Prez-Date-CTL Confidential 4848 Karman Parsaye’s Measuring Personalization Quotient –Customization (PQ1) – individual preferences –Individualization (PQ2) – based on users behavior –Group characteristics (PQ3) – based on preferences of others with similar interests

CAS-COD-Prez-Date-CTL Confidential 4949 Types of Communication a Firm Can Maintain with its Customer Base Communication –Dimensions of communication –Broadcast –Mass mailings –FAQ – newsletters –Content-update reminders –Broadcast events

CAS-COD-Prez-Date-CTL Confidential 5050 Communication... Interactive –e-commerce dialogue –Customer services –User input Hybrid –Combines broadcast and interactive –Often “freeware” use as marketing

CAS-COD-Prez-Date-CTL Confidential 5151 Communication Archetypes –One-to-many nonresponding user – mass mailings targeted to user –One-to-many, responding user – mass mailings targeted to defined audiences –One-to-many, live interaction – live information exchanged in real-time –One-to-one, nonresponding user – personalized messages to specific user needs or interests –One-to-one, responding user – specific use interests or needs –One-to-one, living interaction – sends and receives personalized user messages or carries on chat sessions addressing specific user needs or interests

CAS-COD-Prez-Date-CTL Confidential 5252 One-to-Many, Non-Responding Example — theStandard.com

CAS-COD-Prez-Date-CTL Confidential 5353 One-to-Many, Responding User Example — BizRate.com

CAS-COD-Prez-Date-CTL Confidential 5454 One-to-Many, Live Interaction Example — Accrue 2000 Web Seminar

CAS-COD-Prez-Date-CTL Confidential 5 One-to-One, Non-Responding User Example — Hallmark.com

CAS-COD-Prez-Date-CTL Confidential 5656 Exhibit 4-28: One-to-One, Responding User Example — Amazon.com

CAS-COD-Prez-Date-CTL Confidential 5757 Exhibit 4-29: One-to-One, Live Interaction Example — LivePerson.com

CAS-COD-Prez-Date-CTL Confidential 5858 A Firm’s Connection with Other Businesses –Connection –Degree site is able to link to other sites –Embedded, links maybe on serve or another server –Dimensions of connection  Links to sites  Home site background  Outsourced content  Percent of home site content  Pathway of connection Pathway of connection

CAS-COD-Prez-Date-CTL Confidential 5959 Communication Archetypes –One-to-many nonresponding user  mass mailings targeted to user –One-to-many, responding user  mass mailings targeted to defined audiences –One-to-many, live interaction  live information exchanged in real-time –One-to-one, nonresponding user  personalized messages to specific user needs or interests –One-to-one, responding user  specific use interests or needs – One-to-one, living interaction  sends and receives personalized user messages or carries on chat sessions addressing specific user needs or interests

CAS-COD-Prez-Date-CTL Confidential 6060 A Firm’s Connection with Other Businesses  Connection –Degree site is able to link to other sites –Embedded, links maybe on serve or another server –Dimensions of connection –Links to sites –Home site background –Outsourced content –Percent of home site content –Pathway of connection

CAS-COD-Prez-Date-CTL Confidential 6161 Connection archetypes –Destination site  site generated with few links –Hub site  combination of site-generated and links to selective sites –Portal site  absolute links to large numbers of other sites –Affiliate program  direct users through links or site banners or other ads –Outsourced content  generated by third parties – Meta-software  utility and plug-in software application creation

CAS-COD-Prez-Date-CTL Confidential 6262 Destination Example — NYTimes.com

CAS-COD-Prez-Date-CTL Confidential 6363 Hub Example — DrKoop.com

CAS-COD-Prez-Date-CTL Confidential 6464 Portal Example — Yahoo.com

CAS-COD-Prez-Date-CTL Confidential 6565 Affiliate Program Example — Onhealth.com and Proflowers.com

CAS-COD-Prez-Date-CTL Confidential 6 Outsourced Content Example — Real.com

CAS-COD-Prez-Date-CTL Confidential 6767 Meta-software Example — RUSure.com

CAS-COD-Prez-Date-CTL Confidential 6868 Alternative Pricing Modes of Commerce Archetypes –Commerce  Support aspects of trading transactions  Focused on tools  Alternative pricing strategies –Dimensions of commerce  Registration  Shopping cart  Security  Credit-card approval  One-click shopping  Orders through affiliates  Configuration technology  Order tracking  Delivery options

CAS-COD-Prez-Date-CTL Confidential 6969 Commerce Archetypes –Catalog pricing  preset by the seller –Auction pricing  highest bidder wins –Reverse auction pricing  sellers bid against each other –Demand aggregation pricing  buyer demand is aggregated to achieve economies of scale –Haggle pricing  users and site negotiate over price

CAS-COD-Prez-Date-CTL Confidential 7070 Offline integration of the customer interface –Context  look –and-feel of the physical store –Content  products, services, associated information –Community  communication between customers and staff –Customization  personalized customer products, services, personalized credit-cards, recognition and privileges at restaurants, airlines, catalogs, and other stores –Connection  degree connected to other offline stores –Commerce  transaction capabilities of a store, Dutch and English auction, demand aggregation, prepurchase, and remarketed

CAS-COD-Prez-Date-CTL Confidential 7171 Drill Down - Commerce Origination vs. Facilitation Commerce Origination Commerce originating at a site. It is achieved through acquisition of new customers and loyalty building among existing customers New Customer Acquisition Tools include: –Online advertising –Banner ads at other sites –URL listing in industry catalogs –Sponsorships of online events or of other site activities –Viral marketing –Marketing with the assistance of existing customers, who pass marketing messages along to friends or colleagues –Examples include marketing footers at the end of user messages, prompts inviting users to send the site URL or the output of their activity on the site to others –Offline advertising –Advertisements on radio, television, movie theaters –Sponsorships of offline events, such as conferences on the New Economy Commerce originating at a site. It is achieved through acquisition of new customers and loyalty building among existing customers New Customer Acquisition Tools include: –Online advertising –Banner ads at other sites –URL listing in industry catalogs –Sponsorships of online events or of other site activities –Viral marketing –Marketing with the assistance of existing customers, who pass marketing messages along to friends or colleagues –Examples include marketing footers at the end of user messages, prompts inviting users to send the site URL or the output of their activity on the site to others –Offline advertising –Advertisements on radio, television, movie theaters –Sponsorships of offline events, such as conferences on the New Economy Commerce Facilitation Commerce facilitated through the intervention of a third party, directing traffic to a site. It can be achieved through affiliations and partnerships Affiliations / Partnerships –How they work –Home site signs up other sites in a partnership/affiliation program –Affiliate sites place a link on their site that directs users to the home site –In some cases, a user gets directed to a site through an affiliate while remaining in the affiliate’s URL space –Participating affiliate sites receive a percentage cut (typically 5-10%) on all sales generated at the home site as a result of click throughs from the affiliate sites –Incentives to affiliates –Financial: Affiliate sites receive a percentage of the sales they generate –Brand building: Being an affiliate to a well- known brand increases visibility –Improved capabilities: By linking users to additional sites, affiliates can increase their breadth of offerings Commerce facilitated through the intervention of a third party, directing traffic to a site. It can be achieved through affiliations and partnerships Affiliations / Partnerships –How they work –Home site signs up other sites in a partnership/affiliation program –Affiliate sites place a link on their site that directs users to the home site –In some cases, a user gets directed to a site through an affiliate while remaining in the affiliate’s URL space –Participating affiliate sites receive a percentage cut (typically 5-10%) on all sales generated at the home site as a result of click throughs from the affiliate sites –Incentives to affiliates –Financial: Affiliate sites receive a percentage of the sales they generate –Brand building: Being an affiliate to a well- known brand increases visibility –Improved capabilities: By linking users to additional sites, affiliates can increase their breadth of offerings

CAS-COD-Prez-Date-CTL Confidential 7272 Schwab’s Customer Interface –Context  Highly functional look-and-feel  Little attention to aesthetics  Quick location and process information –Content  Category killer  Information dominant  Fits value proposition

CAS-COD-Prez-Date-CTL Confidential 7373 Schwab’s Customer Interface... –Community  Not offered on its site  Site provides all necessary information –Customization  Personalization tools  Fits with user friendly platform –Communication  Number of communication venues between use an site  Learning Center  Quarterly Investment Magazine  Live investment forums  Real-time customer service through phone service and in-branch  Connection  A number offered  Hub for mutual funds  Original content and tools  Outsources some content such as stock analyzer  Hoovers Online

CAS-COD-Prez-Date-CTL Confidential 7474 Schwab’s Customer Interface... –Commerce  Catalog model  Commission discounts to certain traders with volume  Advanced software applications –Reinforcement among Schwab’s 7Cs  Site content reinforces its content  Highly functional layout  Reinforces context

CAS-COD-Prez-Date-CTL Confidential Cs of Schwab

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