Mom The and Pop Virtual Store
B2C and C2C INBS 510 Module 2
Understanding the Internet Consumer
Forrester Research- Internet Economy Technographics- attitude toward technology
Early adopters- first to get online and shop 30 % Mainstream- slower to adopt 47% laggards- last to move online 22%
demographics psychographics
Forrester Research of Technographics
Digital hopefuls7% Fast forwards 12% Gadget grabbers9% Handshakers7% Media junkies5% Mouse potatoes 9%
New age nurturers 8% Sidelined citizens28% Technostrivers7% traditionalists8%
% of 204 million US adults
Mary Modahl Now or Never- Winning the Battle for the Internet Consumer
Why consumers buy on-line
Attitude toward technology
Age gender high income optimists low income optimists high income pessimists low income pessimists
Motivation to use technology
Income
Entertainment Family career
Example Starbucks vs Maxwell House
High income optimists Career motivated Early adopters Low to moderate income Older mainstream
Getting the Early Adopters
Fast forwards- career
entertainment
Travel electronics Cars Books , music video stocks Music video Clothing software
fun social status excitement
New age nurturers- family
Early adopters
ie. Mouse potatoes- high income optimists for entertainment
Clothing Music video Spenders- compulsive Style conscious
BUT B2C wants mainstream= trillion dollars
High income pessimists
Low income optimists
Apathy Need to increase familiarity Improve ease interest
Communities Discounts Time saving convenience
www.internetworld.com
Sept 15th 2001 Seven Practical Ways to become fanatical on behalf of your customers
1. 2. 3.
4.
1. 2. 3.
Offer customers choices 1. www.carsdirect.com Accountability is key Bake it into the company culture 1. www.autobytel.com Know your customer 1. Mine customer data, know their DNA Value the current crop repeat business Human touch matters Measure it- quantitative methods
Winning the Mainstream: Five Step Program
Make it easy for customers to do business with you Focus on the end customer for your products and services Redesign you customer facing business processes from the end customer's point of view Wire your company for profit: design a comprehensive, evolving business electronic architecture Foster customer loyalty- the key to profitability
1-Make it easy, easy easy...
Streamline interactions
Don't waste my time Remember us Make it easy to order Make sure your service delights Customize for me
2-Focus on the End customer
Interact directly Know your customers Make them feel special Build community Provide services and info
3- Redesign from customer's point of view
Stream line behind the scenes Database of customer profile info
Hallmark.com- card services General Motors- security and convenience
Prepare for ripple effect
4- Wire for Profit
Integration
CRM Supply chain Smart cards Digital certificates XML Java
Know Technologies
5- Foster loyalty
Measure customer revenue Measure customer costs Measure customer profitability Evaluate defection Finding and keeping right customers Big question How do you evaluate and measure? Any ideas? Check out www.busreslab.com
Critical Success Factors
1. 2. 3. 4. 5. 6. 7. 8. Target right customer Own the customer experience Streamline 360 degree view of customer relationship Let customers help themselves Help customers Deliver personalized services Foster community
customer.com, Patrica Seybold
Targeting the Right customer
www.aa.com www.national.com How have these targeted the correct customer? Use technographics to market
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