chapter 4 customer interface e-commerce. cas-cod-prez-date-ctl confidential 2 overview of customer...

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


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?


Confidential

4

Seven Design Elements

The 7Cs Framework for customer designInterface is the virtual interfaceWorth visiting?What products or services?What messages does it communicate: exclusivity, low price, or ease of use?


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


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


Confidential

7

Building Fit and Reinforcement

Fit – extent each of 7Cs individually support the business model Reinforcement – aesthetic context of the site


Confidential

8

Fit and Reinforcement of Cs

ContextContext ContentContent CommunityCommunity CustomizationCustomization CommunicationCommunication ConnectionConnection CommerceCommerce

Business ModelBusiness Model

Consistent Reinforcement

Individually Supporting Fit


Confidential

9

Performance of Lands’ End Site


Confidential

10

Look-and-Feel of the Design

Context

– Look and feel of a screen-to-face customer interface

– Includes website, PDA, cell phone


Confidential

11

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


Confidential

12

Aesthetic and Tips

Aesthetic Color scheme Visual themes

Usability Tips and Tricks Quick Easy Search capability Get outside opinion Clear categories Clear product names


Confidential

13

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


Confidential

14

Aesthetic Example — KMGI.com


Confidential

15

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


Confidential

16

Functional Dominant — Brint.com


Confidential

17

Integrated Approach Example — Patagonia.com


Confidential

18

Point-Counterpoint

Can Maximize Both Cannot Maximize Both

Technology makes tradeoff irrelevant Case studies of firms that do both (Reflect.com) More pleasing to customers when both are

accomplished

Inherent tradeoffs in design choice Firms should focus on one dimension Segments gravitate toward one dimension

Point-Counterpoint: Form vs. Function


Confidential

19

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


Confidential

20

Content Archetypes

Offering Dominant Superstore Category killer Specialty store Information-dominant – information, but

may have entertainment Market-dominant – market for buyers

and sellers


Confidential

21

A Framework to Understand Offering-Dominating Archetypes

Superstore

CategoryKiller

SpecialtyStore

NUMBER OF PRODUCT

CATEGORIES

Multiple

Single

Narrow Broad

DEPTH OF PRODUCT LINE


Confidential

22

Superstore Example — Amazon.com


Confidential

23

Category Killer Example — Petsmart.com


Confidential

24

Specialty Store Example — Frontgate.com


Confidential

25

Information Dominant — Business 2.0 (www.business2.com)


Confidential

26

Market Dominant Example — PlasticsNet.com


Confidential

27

PhysicalProduct

Information Service

Superstore Walmart.com CEOExpress.com IBMSolutions.com

Category Killer Petsmart.com DowJones.com Schwab.com

Specialty Frontgate.com Tnbt.com Tradex.com

Information andEntertainment Census.gov IFilm.net Digitalthink.com

Market Maker PlasticsNet.com VerticalNet.com Monster.com

Drill Down - Content Archetypes vs. Offering Types


Confidential

28

Point-Counterpoint

Content Is King Content Is Not King

All leading web sites have excellent content Users will be able to discern inferior content due

to network effects Word-of-mouth will drive out poor content There are multiple “great” content plays – e.g.,

most timely, best coverage, etc. -- that reflecteach of value models

Necessary but not sufficent It’s not about content, it’s about number of users Standards can block emergence of “better

content” players Up-to-date “good” content will always beat out

not as up-to-date “excellent” content Content means “everything” and hence has lost

all meaning

Point-Counterpoint: Is Content King?


Confidential

29

A Community

Community

– A feeling of membership

– Strong sense of involvement

– User-to-user communication


Confidential

30

Elements of a community

– Cohesion

– Effectiveness

– Help

– Relationship

– Language

– Self-regulation


Confidential

31

Types of communities

– Just friends

– Enthusiasts

– Friends in need

– Players

– Traders


Confidential

32

Degree of Member Participation

– Passive

– Active

– Motivated

– Caretakers


Confidential

33

Member Benefits

– Need fulfillment

– Inclusion

– Mutual influence

– Shared emotional experience


Confidential

34

Dimensions of community

– Interactive community

– Chat

– Instant messaging

– Message boards

– Member-to-member e-mail

– Noninteractive communication

– Public member webpages

– Member content


Confidential

35

Communities — Elements, Types, and Benefits

Elements of Community

Types ofCommunities

Member Outcomes: Participation and Benefits

• Cohesion

• Effectiveness

• Help

• Relationships

• Language

• Self-regulation

Just Friends

Friends inNeed

Enthusiasts

Players

Traders

Need Fulfillment

• Inclusion

• Mutual Influence

• Shared Emotional Experiences

Degree ofParticipation


Confidential

36

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


Confidential

37

Bazaar Example — Games.Yahoo.com


Confidential

38

Theme Park Example — VoxCap.com


Confidential

39

Club Example — Gillette Women’s Cancer Connection


Confidential

40

Shrine Example — The Unofficial Dawson’s Creek Web Site


Confidential

41

Theater Example — iFilm.com


Confidential

42

Cafe Example — Bolt.com


Confidential

43

Drill Down - Focus vs. Interactivity

Bazaar

Theme Park

Mall

Shrine Theater Cafe

INTERACTIVITY

FO

CU

S

Bolt.comBolt.comVoxCap.comVoxCap.com

iFilm.comiFilm.com

Trace.comTrace.com

ContactConsortium.com

ContactConsortium.comGames.yahoo.comGames.yahoo.com

No

n-e

qu

ilib

riu

m s

tate

:

Su

cc

es

sfu

lly

-ma

na

ge

d

co

mm

un

itie

s w

ill

mo

ve

to

wa

rd

hig

he

r le

ve

ls o

f in

tera

cti

on

Women’s CancerConnection

Women’s CancerConnection

leonardodicaprio.comleonardodicaprio.com


Confidential

44

The Levers Used to Customize a Site

Customization

– Dimensions of customization

– Personalization

– Log-in registration

– Cookies

– Personalized e-mail 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


Confidential

45

Customization Types

– Personalization by user Consciously articulated Acted upon preferences

– Tailoring by site Reconfigure past behavior Reconfigure by other users of

similar profiles


Confidential

46

Personalization by User Example — mylook.com


Confidential

47

Tailoring by Site Example - Amazon.com


Confidential

48

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


Confidential

49

Types of Communication a Firm Can Maintain with its Customer Base

Communication

– Dimensions of communication

– Broadcast

– Mass mailings

– FAQ

– E-mail newsletters

– Content-update reminders

– Broadcast events


Confidential

50

Communication ...

Interactive

– e-commerce dialogue

– Customer services

– User input Hybrid

– Combines broadcast and interactive

– Often “freeware” use as marketing


Confidential

51

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


Confidential

52

One-to-Many, Non-Responding Example — theStandard.com


Confidential

53

One-to-Many, Responding User Example — BizRate.com


Confidential

54

One-to-Many, Live Interaction Example —

Accrue 2000 Web Seminar


Confidential

55

One-to-One, Non-Responding User Example — Hallmark.com


Confidential

56

Exhibit 4-28: One-to-One, Responding User Example —

Amazon.com


Confidential

57

Exhibit 4-29: One-to-One, Live Interaction Example —

LivePerson.com


Confidential

58

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


Confidential

59

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


Confidential

60

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


Confidential

61

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


Confidential

62

Destination Example — NYTimes.com

[Please insert Exhibit 4-30 here] [Please insert Exhibit 4-31 here] [Please insert Exhibit 4-32 here]


Confidential

63

Hub Example — DrKoop.com


Confidential

64

Portal Example — Yahoo.com


Confidential

65

Affiliate Program Example — Onhealth.com and Proflowers.com


Confidential

66

Outsourced Content Example — Real.com


Confidential

67

Meta-software Example — RUSure.com


Confidential

68

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


Confidential

69

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


Confidential

70

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


Confidential

71

Drill Down - Commerce Origination vs. Facilitation

Commerce OriginationCommerce OriginationCommerce OriginationCommerce 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 email 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 email 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 FacilitationCommerce FacilitationCommerce FacilitationCommerce 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


Confidential

72

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


Confidential

73

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


Confidential

74

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


Confidential

75

7Cs of Schwab


Confidential

76

chapter 4 customer interface e-commerce. cas-cod-prez-date-ctl confidential 2 overview of customer...

Documents

ctl confidential

fit slide

customer design interface

sites communication

site community

face customer interface

cs framework slide

design context