How to Create a Profitable Business Strategy for the Internet

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Patricia Seybold presents
Customers com

• How to Create a Profitable Business Strategy for
  the Internet Beyond

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Make It Easy for Customers to do Business with
You!
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Anecdotes, Tips, Take-Aways for Women In
Technology

• A Brief Personal History
• How to Organize your E-Business for Success
• Key Competencies to Master in Building a
  CyberBusiness
• Whats Hot this E-Tailing Season?

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A Brief Personal History

• Apprenticeship
• Family Business Succession Issues
• Focus on Independence

Patricia Seybold Group The Customers.com
Company E-Business Consultants Thought
Leaders Smart, Soulful People who Care about
Your Customers
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How to Organize Your E-Business Initiatives for
Success
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What do

have in common?
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Theyre Cannibalization/ Green Field E-Business
Initiatives
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How to Organize Your E-Business Group?

• As if it were a Separate Company!
• Led by a Visionary Business Executive VP Sales,
  VP Interactive Marketing, VP Customer Advocacy
• Strong in-house Technology Visionary
• Responsible for All Customer Touchpoints
• Own the Total Customer Experience
• Separate PL 2-year ROI

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Use the Paper Napkin Visioning Technique to
Build Consensus
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What Other Skills Will You Need?

• Customer Experience owner
• E-Merchandising expert
• Strong In-House Content Team
• WebMaster
• In house Communications/PR
• System Integration Help
• Graphic Design Help

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Measure what Matters
The Metrics of the New Economy

• Customers/Members/Subscribers
• Repeat Customers
• Revenues per Customer per Year
• Customer Retention Rates
• Lifetime Value of your Customers
• What you Know about your Customers

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E-Business Models to Watch

• Auctions B-to-B and B-to-C
• Digital Marketplaces
• Syndicated Content
• Manufacturers Aisles
• Wireless Phones, PDA/Pagers Games
• E-Wallets, smart cards customer-owned profiles
• Scenario Nets

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Key Competencies to Master
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Two Key Competencies to Master

• 1. Customer Scenario Design
• 2. XML Semantics Tagging

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Whats Your Customers Scarcest Resource?
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New Competency to Master Customer Scenario Design

• What Makes most Web Sites Hard to USE?
• Not Designed from the Customers point of view
• Target Customer/Role/Context
• Whats the Purpose of the Interaction?
• How do you Streamline it?

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Use Customer Scenarios to Cement Relationships

• Focus on the 3 or 4 Key Scenarios each Target
  Customer/Role needs to do
• Make sure these Scenarios are easy to find and
  execute from the home page
• Look for Bottlenecks and Obstacles and Remove
  Them
• Continuously Improve these Scenarios
• Its about saving customers time!

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Coming Soon.Scenario Nets!
Purchase Spare Parts and Arrange for Emergency
Service
Find, buy, furnish, landscape a new home
Register my car, pay my taxes, renew my license
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Whats a Scenario Net?

• A set of linked tasks and activities the customer
  wants or needs to perform that takes him across
  company and/or Web site boundaries
• A streamlined set of activities based on the
  customers context context and customer profile
  information is preserved as the customer moves
  from site to site
• The customer OPTS IN to scenario nets

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Whats the Biggest Single Usability Problem on
most Sites?
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Cant Find What Im Looking For Quickly

• Whats Needed
• Comprehensive Text Search
• Comprehensive Parametric Search
• Finder/Advisor
• Browse/Catalog/Departments
• Gift-giving scenario
• Recommendations Whats Hot!

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Help Decision-Making
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What is the Simple Little Technology that Enables
E-Merchandising?
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The Importance of XML

• eXtensible Markup Language (XML) is the engine of
  e-business transformation
• XML enables
• Application-to-application integration
• Database-to-database synchronization
• Cross-organizational workflows e-processes
• Industry Transformations!

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Whats Hot this E-Tailing Season?
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What do
Have in Common?
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Theyre Clicks Mortar Operations!
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Clicks Mortar Offers an E-Tailing Advantage
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I want my customer to shop in the store in the
mall on Saturday, receive a catalog on Tuesday,
and shop on the Web Friday night, after the kids
are in bed.Judy Neuman,Divisional VP, Eddie
Bauer I-Media Group
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Clicks Mortar 101

• Shop online, pick up at the store
• Shop online, return at the store
• Shop online AT the store
• Create a seamless experience across catalog, Web
  stores
• Foster customer loyalty across channels
• Manage Inventory across channels

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Should Manufacturers Sell Direct?

• Yes, they have no choice!
• Customers want to be able to buy direct
• Retailers need to make their real-time inventory
  accessible from manufacturers Web sites
• Manufacturers/wholesalers will continue to rely
  on retailers for convenient shopping, pick
  up/delivery service

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Whats the Biggest Danger for Internet Retailers?
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The Fulfillment Iceberg

• Its huge!
• Its dangerous!
• Most of the danger is hidden from sight
• Internet Shoppers expect 1-day delivery
• Pick, Pack Ship must be flawless
• Returns handling must be simple (no MRAs!)
• Gifts need to be wrapped carded

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Who Does a Good Job?

• Fultonstreet.com
• eToys
• Smith Hawken
• Cyberian Outpost
• Hana Flowers
• Dicks Sporting Goods

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Theres more to Fulfillment than Pick, Pack Ship

• Application integration management
• Realtime inventory management
• Proactive emails at every step
• 24 x 7 exquisite customer service
• Complete customer profile
• Complete transaction history
• Complete record of service issues
• Power to resolve issues in the moment
• Integrate call center email

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Participate in the Customers.com E-Tailing
Challenge!

• 50 Criteria Measuring the Holiday online Shopping
  Experience
• Come to our Web site October 15th
  www.Customers.com!
• Participate in the Customers.com E-Tailing
  Challenge
• Make Your Online Shopping Experience Count!

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How to Be Successful in Internet Time!

• Focus on your End-Customers
• Save them Time Design Streamlined Customer
  Scenarios
• Design an Integrated, Cross-Touchpoint Strategy
• Build an Organization that Works!
• Measure the Right Stuff!

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Need More Info on Customers.com Research and
Consulting?

• Come to our Web site www.Customers.com
• Keep up with our thought leadership Sign up for
  the Customers.com service
• For consulting, contact Sales_at_Customers.com
• To interact with me, email me at
  pseybold_at_customers.com