E commrce
- 1. Topic E-Commerce and Customer Relationships on the Internet
- 2. Distributing, buying, selling and marketing products and services over electronic systems E-business for commercial transactions Involves supply chain management, e- marketing, online marketing, EDI Uses electronic technology such as: - Internet - Extranet/Intranet - Protocols
- 3. EC applications first developed in the early 1970s - Electronic funds transfer (EFT) Limited to: - Large corporations - Financial institutions - A few other daring businesses
- 4. Electronic data interchange (EDI)—electronic transfer of documents: - Purchase orders - Invoices - E-payments between firms doing business Enlarged pool of participants to include: - Manufacturers - Retailers - Service providers
- 5. EC Successes - Pure online ◦ eBay VeriSign AOL Checkpoint - Click-and-mortar GE IBM Intel Schwab EC Failures - E-tailors began to fail in 1999 - This does not mean that EC’s days are numbered - Large EC companies like Amazon.com are expanding but success or failure is not certain
- 6. Transformation of economic activity into digital media - Exchange information, content, agreements, and services among parties that are connected to through the Internet. Enables new ways of creating, delivering and capturing value to customers. - Availability - Convenience
- 7. The Internet is the perfect vehicle for e- commerce because of its open standards and structure. It’s cheap and relatively easy to use it as a medium for connecting customers, suppliers, and employees of a firm. The Internet allows big businesses to act like small ones and small businesses to act big. Web-based solutions must be easier to use and more convenient than traditional methods if a company hopes to attract and keep customers.
- 8. Business to Business (B2B) refers to the full spectrum of e-commerce that can occur between two organizations. This includes purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management &service and support. Examples: FreeMarkets, Dell and General Electric Business to Consumer (B2C) refers to exchanges between business and consumers, activities tracked are consumer search, frequently asked questions and service and support. Examples: Amazon, Yahoo and Charles Schwab & Co
- 9. Peer to Peer (C2C) exchanges involve transactions between and among consumers. These can include third party involvement, as in the case of the auction website Ebay. Examples: Owners.com, Craiglist, Monster Consumer to Business (C2B) involves when consumers band together to present themselves as a buyer in group. Example: www.planetfeedback.com
- 10. E-CRM is: Applying… Internet and other digital technology… (web, e-mail, wireless, iTV, databases) to… acquire and retain customers (through a multi-channel buying process and customer lifecycle) by… improving customer knowledge, targeting, service delivery and satisfaction
- 11. Factors, affecting acquiring of customers of e-commerce. Factors, affecting the retention of customers. Factors, affecting the process of buying of customers.
- 12. The stages of CRM consist of the following three phases: ◦ 1) Acquisition of customers ◦ 2) Retention of customers ◦ 3) Extension of customers.
- 13. Targeting is more effectively. Customers have become more powerful as they are more informed. Customer is the leading part in the relationship with the organization. He can “pull” information he needs. Increase depth, breadth and nature of relationship. Lower cost. Personalization in the relationship with customers.
- 14. Internet penetration. Income of household. Number of home PC. Level of computer literacy of Internet users. Type of Internet connection. Trust of customers in e-commerce (Novak, 2002) Website usability( Nielsen, 2000) Customer confidence and trust in Internet. Onsite resources Relationship services. It includes personalization and virtual communities as means of building relationships with customers. Easy navigation of the web-site (Hoffman and Novak, 2001) Design of the web-site. Content of the web-site.