©1999 Patricia Seybold Group How to Create a Profitable Business Strategy for the Internet &...

©1999 Patricia Seybold Group

www.customers.com

How to Create a Profitable Business

Strategy for the Internet & Beyond

Customers com

Patricia Seybold presents:

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©1999 Patricia Seybold Group

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® Make It Easy for Customers to do Business with You!

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©1999 Patricia Seybold Group

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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 • What’s Hot this E-Tailing Season?

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©1999 Patricia Seybold Group

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A Brief Personal History

• Apprenticeship• Family Business Succession Issues• Focus on Independence

Patricia Seybold GroupThe “Customers.com Company”

E-Business Consultants & Thought Leaders

Smart, Soulful People who Care about Your Customers

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©1999 Patricia Seybold Group

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How to Organize Your E-Business Initiatives

for Success

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©1999 Patricia Seybold Group

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What do

have in common?

&

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©1999 Patricia Seybold Group

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They’re Cannibalization/

Green Field E-Business Initiatives

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©1999 Patricia Seybold Group

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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 P&L: 2-year ROI

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©1999 Patricia Seybold Group

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® Use the “Paper Napkin” Visioning Technique to Build Consensus

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©1999 Patricia Seybold Group

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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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©1999 Patricia Seybold Group

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® Measure what Matters

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

The Metrics of the New Economy:

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©1999 Patricia Seybold Group

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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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©1999 Patricia Seybold Group

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Key Competencies to Master

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©1999 Patricia Seybold Group

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Two Key Competencies to Master

1. Customer Scenario Design

2. XML Semantics & Tagging

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©1999 Patricia Seybold Group

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® What’s Your Customers’ Scarcest Resource?

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©1999 Patricia Seybold Group

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® New Competency to Master: Customer Scenario Design

• What Makes most Web Sites Hard to USE?

• Not Designed from the Customer’s point of view

• Target Customer/Role/Context • What’s the Purpose of the Interaction?• How do you Streamline it?

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©1999 Patricia Seybold Group

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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• It’s about saving customers’ time!

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©1999 Patricia Seybold Group

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® Coming Soon….Scenario Nets!

Find, buy, furnish, &

landscape a new home

Purchase Spare Parts and

Arrange for Emergency

Service

Register my car, pay my taxes,

renew my license

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©1999 Patricia Seybold Group

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® What’s 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 customer’s 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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©1999 Patricia Seybold Group

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® What’s the Biggest Single Usability Problem on most Sites?

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©1999 Patricia Seybold Group

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® Can’t Find What I’m Looking For Quickly

What’s Needed:• Comprehensive Text Search• Comprehensive Parametric Search• Finder/Advisor• Browse/Catalog/Departments• Gift-giving scenario• Recommendations: What’s Hot!

Help Decision-Making

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©1999 Patricia Seybold Group

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® What is the Simple Little Technology that Enables E-Merchandising?

<?XML version="1.0"?><TransportSchedule Type = "Airline">

<Segment ID="United Airlines #200"><Origin> San Francisco</Origin><DepartTime>9:30 AM</DepartTime><Destination>Honolulu</Destination><ArriveTime>12:30 PM</ArriveTime><Price Currency="USD">368.50</Price>

</Segment></TransportSchedule>

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©1999 Patricia Seybold Group

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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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©1999 Patricia Seybold Group

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®

What’s Hot this E-Tailing Season?

www.customers.com

©1999 Patricia Seybold Group

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® What do

Have in Common?

www.customers.com

©1999 Patricia Seybold Group

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® They’re Clicks & Mortar Operations!

Clicks & Mortar Offers an E-Tailing Advantage

©1999 Patricia Seybold Group

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©1999 Patricia Seybold Group

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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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©1999 Patricia Seybold 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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©1999 Patricia Seybold Group

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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

What’s the Biggest Danger for Internet Retailers?

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©1999 Patricia Seybold Group

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®The Fulfillment Iceberg• It’s huge!• It’s 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

MRA’s!)• Gifts need to be wrapped & carded

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©1999 Patricia Seybold Group

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® Who Does a Good Job?

• Fultonstreet.com• eToys• Smith & Hawken• Cyberian Outpost• Hana Flowers• Dick’s Sporting Goods

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©1999 Patricia Seybold Group

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® There’s 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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©1999 Patricia Seybold Group

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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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©1999 Patricia Seybold Group

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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!

www.customers.com

©1999 Patricia Seybold Group

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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@Customers.com

• To interact with me, email me at pseybold@customers.com