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1©1999 Gary Green
Gary GreenGary GreenAuthor of the book by the same titleAuthor of the book by the same title
Co-founder of 4Dshopping.comCo-founder of 4Dshopping.comFounder e-shortcut.comFounder e-shortcut.com
““Super Affiliate” LinkShare.comSuper Affiliate” LinkShare.comFormer Director of Internet Business, Smith-Gardner & AssociatesFormer Director of Internet Business, Smith-Gardner & Associates
Pay No Attention to the Pay No Attention to the Man Behind the CurtainMan Behind the Curtain
Navigating The Yellow Brick Information SuperhighwayNavigating The Yellow Brick Information Superhighway
The Day-to-Day Realities of Doing The Day-to-Day Realities of Doing Business on the WebBusiness on the Web
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2©1999 Gary Green
Imagine how Imagine how different different Radio would Radio would have been if have been if Marconi had Marconi had controlled controlled content and content and how we surfed how we surfed channelschannels……
Bored Yet?Bored Yet?
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3©1999 Gary Green
We Might Have Heard:.- / ..-. .. .-. . -.-- / .... --- .-. ... . / .-- .. - .... - .... . / ... .--. . . -.. / --- ..-. / .-.. .. --. .... - .-.-.- / - .... ..- -. -.. . .-. .. -. --. / .... --- --- ..-. / -... . .- - ... .-.-.- / .- -. -.. / .- / .... . .- .-. - -.-- / .-..-. .... .. -....- -.-- --- / ... .. .-.. ...- . .-. .-..-. .-.-.- / .-. . - ..- .-. -. / .-- .. - .... / ..- ... / -. --- .-- / - --- / - .... . / - .... .-. .. .-.. .-.. .. -. --. / -.. .- -.-- ... / --- ..-. / -.-- . ... - . .-. -.-- . .- .-. / - .... . / .-.. --- -. . / .-. .- -. --. . .-. / .-. .. -.. . ... / .- --. .- .. -. .-.-.-
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4©1999 Gary Green
Instead of hearing:Instead of hearing:
And who And who knows when or knows when or IF IF television television would have would have come along?come along?
““A fiery horse with the speed of light. A fiery horse with the speed of light. A cloud of dust; and a hearty "Hi-yo A cloud of dust; and a hearty "Hi-yo Silver". Return with us now to the Silver". Return with us now to the thrilling days of yesteryear; the Lone thrilling days of yesteryear; the Lone Ranger rides again.Ranger rides again.””
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5©1999 Gary Green
Marconi-like nerds Marconi-like nerds have created the have created the rules and format rules and format for web content…for web content…
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6©1999 Gary Green
..ignoring the expertise of ..ignoring the expertise of the greatest merchandisers the greatest merchandisers and marketers in the history and marketers in the history of the world…of the world…
AmericanAmerican
RetaileRetailersrs
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7©1999 Gary Green
And you wonderAnd you wonder
WHY?WHY?•Only 1% of retail sales come Only 1% of retail sales come from the internet; while more from the internet; while more than 19% come from than 19% come from catalogs catalogs (Forrester Research & eMarketer compared to Goldman Sachs retail market)
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8©1999 Gary Green
And you wonderAnd you wonder
WHY?WHY?• Yet 34% of the US homes Yet 34% of the US homes have internet access have internet access (Neilson Media Research 1999)
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9©1999 Gary Green
The techno-nerds make The techno-nerds make consumers learn new rules and consumers learn new rules and we ignore the experience of we ignore the experience of merchandisersmerchandisers……
……Just as if youJust as if you’’d been required d been required to learn morse code to listen to to learn morse code to listen to radio.radio.
http://www.???http://www.???oror
..-. .. .-. . -.-- / .... --- .-. ..-. .. .-. . -.-- / .... --- .-.
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10©1999 Gary Green
MillionMillionss
of Dollarsof DollarsHave been spent on shelf-Have been spent on shelf-planning, product placement, planning, product placement, floor layout; and consumer floor layout; and consumer behavior tracking…behavior tracking…
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11©1999 Gary Green
links; http; www; cookies; ssl; server
side includes; java; click here; scroll
down; boolean; search engine; submit;
tcp/ip; asp; html; home page; browser;
bookmark; links; http; www; cookies;
ssl; server side includes; java; click
here; scroll down; boolean; search
engine; submit; tcp/ip; asp; html;
home page; browser; bookmark; links;
http; www; cookies; ssl; server side
includes; java; click here; scroll down;
boolean; search engine; submit; tcp/ip;
But with the But with the new new on lineon line rules these rules these
investments investments are…are…
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12©1999 Gary Green
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13©1999 Gary Green
links; http; www; cookies; ssl; server
side includes; java; click here; scroll
down; boolean; search engine; submit;
tcp/ip; asp; html; home page; browser;
bookmark; links; http; www; cookies;
ssl; server side includes; java; click
here; scroll down; boolean; search
engine; submit; tcp/ip; asp; html;
home page; browser; bookmark; links;
http; www; cookies; ssl; server side
includes; java; click here; scroll down;
boolean; search engine; submit; tcp/ip;
Ignored.Ignored.
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14©1999 Gary Green
And the new Marconi’s And the new Marconi’s say “on the Information say “on the Information
Superhighway…Superhighway…
……those rules just don’t work.”those rules just don’t work.”
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15©1999 Gary Green
The The Information Information SuperhighwaySuperhighway
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16©1999 Gary Green
……is really is really more of an more of an Information Information Yellow Brick Yellow Brick
RoadRoad
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17©1999 Gary Green
Dazzling Dazzling storefronts storefronts that truly do that truly do rival the rival the Emerald City Emerald City of Oz.of Oz.
And as you enter any one of these stores you are even further courted, polished, and enticed as you move toward the great and powerful wizard known as shopping.
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18©1999 Gary Green
But They Are Just Hollow Storefronts
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19©1999 Gary Green
The 1998 The 1998 Christmas Roller Christmas Roller
Blade Skate Blade Skate MethodMethod
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20©1999 Gary Green
1sy 2sy Orders
““I sell a $7.50 product on line, and in I sell a $7.50 product on line, and in labor, split cases, inventory labor, split cases, inventory maintenance and tracking, it costs maintenance and tracking, it costs me $15 to process the order…and me $15 to process the order…and that is before shipping,”that is before shipping,”
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21©1999 Gary Green
• “in stock” items were NOT;
• the website is updated only weekly;
• a phone to get a ship tracking number…. caller was put on hold for more than an hour only to discover that the item had not been shipped
• “Even in those transactions which went relatively smoothly, delays in receiving the merchandise were quite common. Mis-shipments and price mix-ups were common place.”
The Computer Store ModelThe Computer Store Model
Interworld Magazine, Jan. 1999, writing about Egghead.com
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22©1999 Gary Green
• The every-Thursday fax to the warehouse;
• The “we don’t support that platform”;
• The “Our systems crashes at 30,000 orders”;
• The “backorders-what’s that?”
Other typical infrastructures:Other typical infrastructures:
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23©1999 Gary Green
Current shopping on line is difficult to navigate (drill-down shopping loses many consumers…even the hard-core web surfers)
June 1999 Study by Indiana University and KPMG determined that consumers feel:
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24©1999 Gary Green
Lack of store information causing poor customer service.
But the number one issue cited by KPMG & a LinkShare May 1999 Study, and the July 12, 1999 Wall Street Journal was:
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25©1999 Gary Green
Pay No Attention To That Pay No Attention To That Man Behind The CurtainMan Behind The Curtain
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26©1999 Gary Green
Where are the ruby Where are the ruby slippers…slippers…
…the magic that WILL make it all work; that will make all the glitter and hype real?
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27©1999 Gary Green
The Nine Areas:The Nine Areas:1.1. Customer Personalization & Customer Personalization &
Merchandising;Merchandising;2.2. An Order Taking & Shopping Cart An Order Taking & Shopping Cart
system;system;3.3. Methodologies for Automated Methodologies for Automated
Payment & Security;Payment & Security;4.4. Order Management;Order Management;5.5. Warehousing (pick-pack-ship)Warehousing (pick-pack-ship)
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28©1999 Gary Green
The Nine Areas:The Nine Areas:
6.6. Customer Service;Customer Service;7.7. Inventory Accounting real time Inventory Accounting real time
with each transaction;with each transaction;8.8. System Interoperability;System Interoperability;9.9. Business processes and Business processes and
marketing the sitemarketing the site..
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29©1999 Gary Green
Enterprise FullEnterprise FullI-commerce SolutionI-commerce Solution
……without the kludge of piece-meal patches.without the kludge of piece-meal patches.
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30©1999 Gary Green
Customer Customer Personalization & Personalization &
MerchandisingMerchandising
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31©1999 Gary Green
Dynamic Page RoutingDynamic Page Routing
actual WebOrder™ site: www.journeyed.com linking from Dell
Computers & from Yahoo
Shows different looking pages…even different catalogs & prices…based on how the customer gets to the web site:
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32©1999 Gary Green
Not Just A DifferentNot Just A DifferentLooking Page…Looking Page…
…….but a different OFFER!.but a different OFFER!
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33©1999 Gary Green
Dell Computers & Journey Education
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34©1999 Gary Green
Journey Stand Alone
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35©1999 Gary Green
U of Florida
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36©1999 Gary Green
USC
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37©1999 Gary Green
Journey home
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38©1999 Gary Green
RFM RFM Data Data
ModelModel
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39©1999 Gary Green
Personal ShopperPersonal Shopper
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40©1999 Gary Green
Birthday Module
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41©1999 Gary Green
Campaign Management Campaign Management Through Data MartsThrough Data Marts
ODBC Compliant Data Marts containingODBC Compliant Data Marts containingWarehoused summarized dataWarehoused summarized data
Daily/Daily/Weekly/Weekly/Monthly Monthly
Productivity Productivity AnalysisAnalysis
Required for industry standard and customized reportingRequired for industry standard and customized reporting
Merchandise Merchandise Performance Performance
AnalysisAnalysis
Customer Customer Lifetime Lifetime
RFM/Source RFM/Source AnalysisAnalysis
Advertising Advertising Response Response Analysis Analysis
(RFM)(RFM)
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42©1999 Gary Green
Campaign Campaign Analytical ToolsAnalytical Tools
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43©1999 Gary Green
Order Taking & Order Taking & Shopping Cart Shopping Cart
SystemSystem
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44©1999 Gary Green
Multi-company & Multi Multi-company & Multi DivisionalDivisional
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45©1999 Gary Green
Search Search Engine…Engine…
Keyword searches, Category searches, Sounds-like, full words or partial word searches,all with sub-second response time ...
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46©1999 Gary Green
Big words
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47©1999 Gary Green
Product Categories Product Categories Sub CategoriesSub Categories
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48©1999 Gary Green
Gemplers
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49©1999 Gary Green
Dynamically Created Product Dynamically Created Product Pages From One Data SourcePages From One Data Source
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50©1999 Gary Green
Changing the price requires no web design.
Simply type the new price in the “Item Master” and the web page redesigns itself.
On the Fly Pricing and On the Fly Pricing and Product ChangesProduct Changes
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51©1999 Gary Green
Availability FlagsAvailability Flags(Including Expected Inventory Dates)
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52©1999 Gary Green
In stock?In stock?
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53©1999 Gary Green
……Maybe/Maybe NotMaybe/Maybe Not
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54©1999 Gary Green
……or did we lie?or did we lie?
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55©1999 Gary Green
……or did we lie?or did we lie?
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56©1999 Gary Green
……or is it in code?or is it in code?
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57©1999 Gary Green
Dynamic On-the-fly Dynamic On-the-fly Style MatrixStyle Matrix
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58©1999 Gary Green
KitsKits(the Ability to Bundle Individual but
Related Products Into One SKU)
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59©1999 Gary Green
Up-sell and Cross-sell Up-sell and Cross-sell Tied to ProductsTied to Products
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60©1999 Gary Green
Coldwater Creek
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61©1999 Gary Green
Discounts, Coupons, & Discounts, Coupons, & Price BreaksPrice Breaks
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62©1999 Gary Green
Automated Sale Automated Sale Pricing PeriodsPricing Periods
November 1st Web page
November 2nd Web page
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63©1999 Gary Green
Automatically Populate Automatically Populate Order FormOrder Form
For Returning For Returning CustomersCustomers
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64©1999 Gary Green
Order Recap Order Recap (and changes)(and changes)
Before ProcessingBefore Processing
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65©1999 Gary Green
Instant Order Number Instant Order Number & & TrueTrue Confirmation Confirmation
Customer Service Phone Operators Can Real Time Review Order
+ email + email confirmationsconfirmations
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66©1999 Gary Green
Confirmed Before You Order?Confirmed Before You Order?
1
2
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67©1999 Gary Green
Payment & SecurityPayment & Security
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68©1999 Gary Green
TRANSACTION TRANSACTION MODELMODEL
vs.vs.Client ServerClient Server
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69©1999 Gary Green
In a true client-server In a true client-server model, the “client” model, the “client” computer is always computer is always connected to the connected to the “server”.“server”.
The server The server knows who knows who and where the and where the client is.client is.
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70©1999 Gary Green
Despite the hype…the Internet is NOT a Despite the hype…the Internet is NOT a client server model of computing…client server model of computing…
•Once a web page has loaded, the client connection to the server has ended.
•The server can even be unplugged and the page will still be on the “client” machine.
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71©1999 Gary Green
Rather, the Internet is a Rather, the Internet is a TRANSACTION model:TRANSACTION model:
both the connection and both the connection and the data passed depend the data passed depend on a single one-way on a single one-way sending of information…sending of information…transactionstransactions
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72©1999 Gary Green
……to compensate, the to compensate, the web creates software web creates software devices to “fake” the devices to “fake” the client relationship.client relationship.
•Cookies
•Session Ids
•User names
•Mini-programs (java applets, server-side includes, etc.)
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73©1999 Gary Green
CookiesCookies
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74©1999 Gary Green
Typical Cookie Typical Cookie
x-mainEm520rtC2lzqimMpKai4WG?2F6Tmp1rMamazon.com/0291634137631961269185886662429271981*ubid-main002-8774971-9123642amazon.com/0291634137631961269185886662429271981*session-id-time932025600amazon.com/015669657629281944315577760029280650*session-id002-7741812-5659027amazon.com/015669657629281944315637760029280650*
Company that planted cookie (Amazon.com)
Session ID to artificially maintain client/server environment
““spyingspying”” information to information to see if customer goes to see if customer goes to competitorcompetitor’’s auction s auction site (Ubid)site (Ubid)
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75©1999 Gary Green
CommercialCommercialAnti-Cookie SoftwareAnti-Cookie Software
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76©1999 Gary Green
Highly Secure Highly Secure “Brownie”“Brownie”
Shopping Cart Shopping Cart TechnologyTechnology
……no cookies or other customer security risksno cookies or other customer security risks
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77©1999 Gary Green
The Same Transaction The Same Transaction Model Follows For Model Follows For Data Base Calls…Data Base Calls…
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78©1999 Gary Green
For example, to For example, to perform the perform the TRANSACTION of TRANSACTION of doing an RFM upsell doing an RFM upsell based on customer, based on customer, order, order details, order, order details, categories of categories of purchase and purchase and products…products…
In the client-server model a In the client-server model a “relational” table must “relational” table must open for each database open for each database item from which item from which information is neededinformation is needed
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79©1999 Gary Green
Only one database is opened…Only one database is opened…but five (or more) tables must but five (or more) tables must be scanned for databe scanned for data
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80©1999 Gary Green
But to create the same page in But to create the same page in a TRANSACTIONAL data a TRANSACTIONAL data base…base…
Multiple tables Multiple tables are NOT uses; are NOT uses; rather rather transactions transactions occur in a occur in a specified order.specified order.
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81©1999 Gary Green
This allows much faster and This allows much faster and clearly more efficient creation clearly more efficient creation of data-driven pages…of data-driven pages…
Allowing such fast and Allowing such fast and secure payment secure payment processes such as:processes such as:
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82©1999 Gary Green
Dynamic Tax TablesDynamic Tax Tables
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83©1999 Gary Green
Tax Calculations…Tax Calculations…
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84©1999 Gary Green
vs. more customer workvs. more customer work
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85©1999 Gary Green
Offer-driven Offer-driven Payment MethodPayment Method
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86©1999 Gary Green
Payment Method Payment Method FlexibilityFlexibility
•Split Pay Methods
•Multi-currency
•Multi-Lingual
•Open Account
•P.O.•Traditional Paper Checks (guaranteed through 3rd party)
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87©1999 Gary Green
Installment Billing To Installment Billing To Credit CardCredit Card
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88©1999 Gary Green
•Check-digit routine for credit card numbers
•Redline controls
•Charge amount controls
•Number of orders controls
•Credit card frequency controls
…more
Money SavingMoney SavingPre-authorizationPre-authorization
Screening Of Credit CardsScreening Of Credit Cards
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89©1999 Gary Green
SSL & Encryption ProtocolsSSL & Encryption Protocols
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90©1999 Gary Green
Order ManagementOrder Management
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91©1999 Gary Green
How Do I Order?How Do I Order?
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92©1999 Gary Green
How Do I Order?How Do I Order?
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93©1999 Gary Green
Take You Back To The Take You Back To The Same Page!Same Page!
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94©1999 Gary Green
Create Product Create Product Definitions (types)Definitions (types)
•Regular Active
•New
•Continuity (timed shipments)
•To Be Cancelled
•Cancelled-Refund Prepaid
•Gift Certificates
•Always Drop Ship
•Optional Drop Ship
•Communicate Information
•Gift Product
•Customized/Personalized
•Kits, groups
•…many more
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95©1999 Gary Green
Backorder Backorder Processing & FTC Processing & FTC
NoticesNotices•Same rules for catalog orders apply to Same rules for catalog orders apply to Internet orders…and same PENALTIES for Internet orders…and same PENALTIES for failing to comply.failing to comply.
•Software should generate automated FTC Software should generate automated FTC notices based on real time inventory notices based on real time inventory analysis.analysis.
•Software should have built-in Backorder Software should have built-in Backorder Processing LogicProcessing Logic
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96©1999 Gary Green
Flexible Order Flexible Order Processing OptionsProcessing Options
Process by:
•State
•City
•Warehouse Locations
•Single orders•Special Requirements (Holiday Orders Only, for example)
……many other flexible many other flexible options using your own options using your own rules for customization.rules for customization.
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97©1999 Gary Green
Real Time Order Bar Real Time Order Bar Graph AnalysisGraph Analysis
(Orders Per Hour)
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98©1999 Gary Green
Warehousing & Warehousing & ShippingShipping
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99©1999 Gary Green
Dynamic Shipping Dynamic Shipping MethodsMethods
By Offer…orBy Offer…or
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100©1999 Gary Green
ITEM-BASEDITEM-BASEDDynamic Shipping Dynamic Shipping
MethodsMethods
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101©1999 Gary Green
Dynamic Dynamic Shipping TablesShipping Tables
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102©1999 Gary Green
Compute Shipping On The Fly…Compute Shipping On The Fly…
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103©1999 Gary Green
……vs. make the customer work morevs. make the customer work more
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104©1999 Gary Green
Order Order CommentsComments
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105©1999 Gary Green
A reporting A reporting system at every system at every
stepstep
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106©1999 Gary Green
Inventory Decision SupportInventory Decision Support•A system should have the ability to create curves from past on-line offer history (catalogs)
•From item, style, category, and offer
•Link current on-line offer to past offer(s)
•Project all current web offer sales simultaneously
•Overlay demand, receipts, and returns
•Automated alert of overstock (and ability to quickly promote overstocks)
•Item exception reporting
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107©1999 Gary Green
Customer ServiceCustomer Service
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108©1999 Gary Green
Tough Luck…Tough Luck…
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109©1999 Gary Green
You Can Contact UsYou Can Contact Us
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110©1999 Gary Green
You You CAN CAN bother us… bother us… but please follow three but please follow three
pages of rules if you do.pages of rules if you do.
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111©1999 Gary Green
……or you can use or you can use your computer to your computer to talk to customer talk to customer
service… in service… in person!person!
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112©1999 Gary Green
But what But what information is information is available once available once you you DODO contact contact
the companythe company??
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113©1999 Gary Green
On-line Order Status On-line Order Status & History& History
1. Complete Customer Order History
2. Real Time Status of Outstanding Order(s)
3. Ability to repeat past orders (at current offer price)
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114©1999 Gary Green
Checked for 11 hours Checked for 11 hours after order was after order was
placed…placed…
both on both on line and via line and via telephonetelephone
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115©1999 Gary Green
Order Status Order Status
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116©1999 Gary Green
Complete Order Complete Order History History
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117©1999 Gary Green
Real Time Details Real Time Details
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118©1999 Gary Green
Automated Automated Ship TrackingShip Tracking
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119©1999 Gary Green
Timed Shopping Cart Timed Shopping Cart SavesSaves
Options:1. Abandon Cart
2. Complete Order
3. Save Cart until future return to site
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120©1999 Gary Green
All Software All Software Should Provide An Should Provide An Automated Order Automated Order
Confirmation Confirmation E-mailE-mail
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121©1999 Gary Green
As Well As An Automated As Well As An Automated Order Ship ConfirmationOrder Ship Confirmation
E-mailE-mail
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122©1999 Gary Green
Automated Up-sellAutomated Up-sellE-mailE-mail
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123©1999 Gary Green
You should have the ability to automatically e-mail groups of customers based on like characteristics (such as all customers who shopped on a certain date, or all purchasers of a certain product, or all customers within a certain state or zip code, etc.).
There should be no limit to the number of automated or differently-grouped e-mails you can target to your customers.
Broadcast E-mailsBroadcast E-mails
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124©1999 Gary Green
Customer Service Customer Service ReportingReporting
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125©1999 Gary Green
Accounting & Accounting & ReportingReporting
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126©1999 Gary Green
Financial Control & Financial Control & AnalysisAnalysis
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127©1999 Gary Green
Product Purchasing Analysis & ForecastingProduct Purchasing Analysis & Forecasting
•Historical Forecasting:Ability to analyze optimum inventory levels based on previous demand history.
•Projection Forecasting:Ability to project future inventory needs on customer base and customer growth rate (rather than inventory analysis).
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128©1999 Gary Green
Integrated PurchasingIntegrated Purchasing•Vendor Analysis:Ability to analyzes purchasing history through multiple vendors per product and determines optimal vendor.
•Item Analysis:Ability to analyze trends, category analysis, vendor sales, net available, and recommends orders.
• P.O. Analysis:Ability to recommend purchasing based on P.O. history.
•Real time purchasing requests:Ability to automatically requisition products when inventory falls below minimal levels.
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129©1999 Gary Green
Accounting Reporting Accounting Reporting Should Be A Basic Part Of Should Be A Basic Part Of
Your Web PlanYour Web PlanExample: Cash In Barometer
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130©1999 Gary Green
System System InteroperabilityInteroperability
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131©1999 Gary Green
You MUST Insist on An Open API & SDKYou MUST Insist on An Open API & SDK
•ODBC Compliant
•API and Software Developers Kit
•Built-in support for legacy databases, Oracle, etc
•Java Virtual Machine and JDK•Works with Microsoft ASP
•Transaction Server based solutions
•Pre-designed for IA-64
•Designed for Y2K (not converted to)
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132©1999 Gary Green
One Example ofOne Example ofTotally OpenTotally Open
Data ExchangeData ExchangeXMLXML standard standard (eXtensible Markup Language)(eXtensible Markup Language)
to allow any platform to access the datato allow any platform to access the data
End User On Web
Web ServerArray
Powerful Transaction Server Backend
XML broker(Unix, Solaris, Linux, NT etc.)
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133©1999 Gary Green
ExperienceExperience(vs. Internet Fly-By-Nighters)
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134©1999 Gary Green
delias
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135©1999 Gary Green
Hickory FarmsHickory Farms
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136©1999 Gary Green
Official Fan ClubOfficial Fan Club
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137©1999 Gary Green
That Pet PlaceThat Pet Place
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138©1999 Gary Green
Wine EnthusiastWine Enthusiast
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139©1999 Gary Green
uBiduBid
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140©1999 Gary Green
Outpost.comOutpost.com
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141©1999 Gary Green
Lands EndLands End
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142©1999 Gary Green
The Outside Is Not The Outside Is Not Important…To Have A Important…To Have A HEART you have to HEART you have to
look at what is INSIDElook at what is INSIDE
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143©1999 Gary Green
No More Hollow Storefronts!
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144©1999 Gary Green
For a copy of this For a copy of this presentation…presentation…www.garygreen.c
om
Click on TECHNOLOGY Click on TECHNOLOGY button and then look button and then look under SLIDESHOWS on under SLIDESHOWS on the page that comes upthe page that comes up
or e-mail:or e-mail:g-2@garygreen.comg-2@garygreen.com
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