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Chapter 5

Strategy Formulation:

Customer Interface

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

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Questions Answered in this Chapter:– What are the seven design elements of the

customer interface?– What determines the look-and-feel of the design?– What are the three content classifications?– Why be concerned with community?– What are the two ways in which websites can

achieve customization?– What types of communication can a firm maintain

with its customer base?– How does a firm connect with other businesses?– What commerce features help websites perform

financial transactions?

Chapter 5: Strategy Formulation: Chapter 5: Strategy Formulation: Customer InterfaceCustomer Interface

5-4IntroductionIntroduction

The customer interface is the virtual representation of a firm's chosen value proposition

Seven design elements of the customer interface (7Cs)– Context– Content– Community– Customization– Communication– Connection– Commerce

5-5Exhibit 5.1: The 7Cs of Customer InterfaceExhibit 5.1: The 7Cs of Customer Interface

Context

Site’s layout and design

Commerce

Site’s capabilities to enable commercial transactions

Connection

Degree site is linked to other sites

Communication

The ways sites enable site-to-user communication or two-way

communication

Customization

Site’s ability to self-tailor to different users or to allow users

to personalize the site

Community

The ways sites enable user-to-user communication

Content

Text, pictures, sound, and video that webpages contain

5-6Exhibit 5.2: Fit and Reinforcement of the 7CsExhibit 5.2: Fit and Reinforcement of the 7Cs

ContextContext ContentContent CommunityCommunity CustomizationCustomization CommunicationCommunication ConnectionConnection CommerceCommerce

Business ModelBusiness Model

Consistent Reinforcement

Individually Supporting Fit

5-7What Determines the Look-and-Feel What Determines the Look-and-Feel of the Design?of the Design?

Context The context of a website captures its aesthetics

and functional look-and-feel Dimensions of Context

– Function Refers to the organization and accessibility of information

• Section Breakdown- is the way the site is organized into subcomponents

• Linking Structure- enables users to move easily between sections

• Navigation Tools- facilitate how the user moves through the site

• Speed- is measured by the time needed to display a page on a user’s screen

• Reliability- how often a site experiences “downtime”

• Platform Independence- is measured by how well the website can run on multiple platforms, including old versions of Web browsers

• Media Accessibility- the ability of a site to download to various media platforms

5-8ContextContext (cont’d)(cont’d)

– Aesthetics Refers to the visual characteristics of a site• Color Scheme- refers to the colors used throughout the site

• Visual Themes- help to tell the story portrayed across the site

Context Classifications– Aesthetically Dominant: Emphasis is on the look-and-feel of

the site. This type of site makes heavy use of visual elements

– Functionally Dominant: Emphasis is on the display of textual information. This type of site limits the visual design to a minimum

– Integrated: Balance of form and function. These sites have a clear and appealing theme that support the underlying graphics

5-9Exhibit 5.3: Form vs. FunctionExhibit 5.3: Form vs. Function-The Design Context Frontier-The Design Context Frontier

Integrated

Aesthetically Dominant

HighLow

High

Low

FUNCTION

Functionally Dominant

Frontier is gradually moving

outward as technology advances

5-10Exhibit 5.4: Aesthetically Dominant Exhibit 5.4: Aesthetically Dominant example—KMGI.comexample—KMGI.com

5-11Exhibit 5-5: Functional Dominant—Brint.comExhibit 5-5: Functional Dominant—Brint.com

5-12Exhibit 5-6: Integrated Example—Patagonia.comExhibit 5-6: Integrated Example—Patagonia.com

5-13Content: Deciding What Information to IncludeContent: Deciding What Information to Include

The Content of a website refers to all the digital information on the site

Dimensions of Content – Offering Mix: The content of a site can include products,

information, services, or a mix of these three

– Appeal Mix: The Company's value proposition is projected in the promotional and communications messages of a site

– Multimedia Mix: Refers to the choices of media including text, audio, image, video and graphics

– Timeliness Mix: The information presented on a site is time-sensitive

• Current Content - Highly time-sensitive information with very short shelf life

• Reference Content - less time-sensitive information with longer shelf life

5-14ContentContent (cont’d)(cont’d)

Content Classifications– Product Dominant: Encompasses store sites that primarily sell

physical goods• Superstore - One-stop shop offering a wide range of goods in multiple

product categories

• Category Killer - Sites offering a comprehensive selection of products and services but only within a specific category

• Specialty Store - Stores offering exceptional quality and exclusivity in single or multiple categories of products

– Information Dominant: Encompasses store sites that focus heavily on information

– Service Dominant: Encompasses store sites that focus on the services offered, often for a fee

5-15Exhibit 5-7: A Framework to Understand Exhibit 5-7: A Framework to Understand Content ClassificationsContent Classifications

Superstore

CategoryKiller

SpecialtyStore

NUMBER OF PRODUCT

CATEGORIES

Multiple

Single

Narrow Broad

DEPTH OF PRODUCT LINE

5-16Exhibit 5-8: Category Killer Example—PetSmartExhibit 5-8: Category Killer Example—PetSmart

5-17Exhibit 5-9: Specialty Store—Frontgate.comExhibit 5-9: Specialty Store—Frontgate.com

5-18Exhibit 5-10: Information-Dominant Exhibit 5-10: Information-Dominant Example—Fast CompanyExample—Fast Company

5-19Exhibit 5-11: Service Dominant Exhibit 5-11: Service Dominant Example—PlasticsNetExample—PlasticsNet

5-20What Makes A Community?What Makes A Community?

Community includes a feeling of membership in a group along with a strong sense of involvement and shared common interests

Five components determine the shape of online communities:

Characteristics

Member Motivation

Member Participation

Member Benefits

Interaction Tools

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CharacteristicsCharacteristics

• The more evolved the community the more likely it is to have these six characteristics– Cohesion- the community develops a group identity

– Effectiveness- the group has impact on members’ lives

– Help- members feel comfortable asking for and receiving help from other members

– Relationships- interaction between individuals leads to friendships

– Language- members develop a specialized language and/or abbreviations with unique meaning within the community

– Self-regulation- the group sets rules for its own interaction and develops a system for policing itself

5-22Exhibit 5-12: Communities—Elements, Types, Exhibit 5-12: Communities—Elements, Types, and Benefitsand Benefits

Member Benefits

Why members are motivated to join the

community

Community Characteristics

How members participate in the community

• Cohesion• Effectiveness• Help• Relationships• Language• Self-regulation

• Need fulfillment• Inclusion• Mutual influence• Shared experiences/

information

Interaction Tools

5-23Community ClassificationsCommunity Classifications

• Nonexistant- sites that have no community offer no way for users to interact with one another, on either a one-to-one basis or one-to-many basis

• Limited- sites that offer features such as reading and posting information, stories, or opinions

• Strong- sites that offer interactive community functions such as chat rooms and message boards

5-24Exhibit 5-13: Limited Community Exhibit 5-13: Limited Community Example—Gillette Women’s Cancer ConnectionExample—Gillette Women’s Cancer Connection

5-25Exhibit 5-14: Strong Community Exhibit 5-14: Strong Community Example—Bolt.comExample—Bolt.com

5-26Customization: Creating an Customization: Creating an Individualized WebsiteIndividualized Website

Customization refers to a site's ability to tailor itself to each user or to be tailored by the user

Dimensions of Customization – Personalization: The user initiates and manages the

customization process

– Tailoring: Software dynamically publishes unique versions of the site to address specific user's interests, habits and needs more appropriately

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Commonly used customization features:– E-mail accounts: Users can send and receive e-mail from the

site, using a free, unique e-mail address

– Content and layout configuration: Users can design their own homepage, within limits, by choosing background colors, layout design, and content sources

– Storage: Users can store e-mail, URLs, favorite content, or items they want to buy

– Agents: Computer programs can perform simple tasks upon request, such as notifying a user via e-mail when a product is in stock

CustomizationCustomization (Cont’d)(Cont’d)

5-28Exhibit 5-15: Personalization by User Exhibit 5-15: Personalization by User Example—MyLook.comExample—MyLook.com

5-29Exhibit 5-16: Tailoring Example—Amazon Exhibit 5-16: Tailoring Example—Amazon Homepage for Two UsersHomepage for Two Users

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Communication refers to the dialogue between a site and its users

Dimensions of Communication – Broadcast: One-way information exchange from organization to

user. Broadcast communication can be in the form of mass mailing, FAQ, e-mail newsletters, content-update reminders and broadcast events

– Interactive: Two-way communication between the organization and a user. Interactive communication can be in the form of e-commerce dialogue, customer service and user input

Communication: Keeping in Touch with UsersCommunication: Keeping in Touch with Users

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Communication Archetypes – One-to-Many, Non-Responding User: Site messages are

announcements that users receive without needing to respond

– One-to-Many, Responding User: Site messages are invitations to users to submit their comments and responses

– One-to-One, Non-Responding User: User receives personalized messages to address specific interests or needs without a need to respond

– One-to-One, Responding User: User responds to personalized messages sent by the site

5-32Exhibit 5-17: One-to-One, Live Interaction Exhibit 5-17: One-to-One, Live Interaction Example—LivePerson.comExample—LivePerson.com

5-33Connection: Linking with Other WebsitesConnection: Linking with Other Websites

Connection is the degree to which a given site is able to link to other sites

Dimensions of Connection

– Outside Links: Links that take the user completely outside the home site and into a third-party site

– Framed Links: Links that take the user to a third-party site that open in the same browser window and that are framed by the home site in some way

– Pop-Up Windows: Links that open up the new site in another browser window while the original website stays in the background

– Outsourced Content: Content that comes from an outside supplier

5-34Exhibit 5-18: Outsourced Content Exhibit 5-18: Outsourced Content Example—Real.comExample—Real.com

5-35Connections ClassificationsConnections Classifications

– Destination Site: Provides almost exclusively site-generated content with very few links to other sites

– Hub Site: Provides a combination of site-generated content and selective links to sites of related interests

– Portal Site: Consists almost exclusively of links to a large number of other sites

5-36Exhibit 5-19: Destination Site—NYTimes.comExhibit 5-19: Destination Site—NYTimes.com

5-37Exhibit 5-20: Hub Example —Industry CentralExhibit 5-20: Hub Example —Industry Central

5-38Exhibit 5-21: Portal Site Example—YahooExhibit 5-21: Portal Site Example—Yahoo

5-39Commerce: Enabling Financial TransactionsCommerce: Enabling Financial Transactions

Commerce refers to the sale of goods, products or services on the site.

Dimensions of Commerce

– Functional tools that are the commerce-enabling features of a website

•Registration •Orders Through Affiliates

•Shopping Cart •Configuration Technology

•Security •Order Tracking

•Credit-Card Approval •Delivery Options

•One-Click Shopping

5-40CommerceCommerce (cont’d)(cont’d)

Commerce Classifications:– Low: These websites have the ability to process transactions, but

with few of the tools that enable e-commerce

– Medium: Some websites have no need for all the commerce bells and whistles and contain financial transactions as a necessary feature but not as their main purpose

– High: These websites are fully equipped with all or almost all the functional tools that enable e-commerce

5-41Exhibit 5-22: Map of 7Cs FrameworkExhibit 5-22: Map of 7Cs Framework

ContextAesthetically

dominantFunctionally

dominantIntegrated

Content Product-dominantInformation-

dominantService- dominant

Community Nonexistent Limited Strong

Customization GenericModerately customized

Highly customized

CommunicationOne-to-many,

nonresponding user

One-to-many,

responding user

One-to-one, nonresponding

user

One-to-one, responding user

Connection Destination Hub Portal

Commerce Low Medium High

5-42Exhibit 5-23: Foot Locker (Exhibit 5-23: Foot Locker (www.footlocker.comwww.footlocker.com))

ContextAesthetically

dominantFunctionally

dominantIntegrated

Content Product-dominant Information-dominant Service-dominant

Community Limited Strong

Customization GenericModerately customized

Highly customized

CommunicationOne-to-many,

nonresponding user

One-to-many, responding

user

One-to-one, nonresponding

user

One-to-one, responding user

Connection Destination Hub Portal

Commerce Low Medium High

Nonexistent

5-43Exhibit 5-24: Cool Running Exhibit 5-24: Cool Running ((www.coolrunning.comwww.coolrunning.com))

ContextAesthetically

dominantFunctionally

dominantIntegrated

ContentProduct-dominant

Information-dominant

Service-dominant

Community Nonexistent Limited Strong

Customization GenericModerately customized

Highl

CommunicationOne-to-many, responding

user

One-to-one, nonresponding

user

Connection Destination Hub Portal

Commerce Low Medium High

Information-dominant

Functionally dominant

Strong

Highly Customized

One-to-oneResponding user

Hub

Low

One-to-manyNonresponding

user

5-44Exhibit 5-25: MarketWatch.com Exhibit 5-25: MarketWatch.com ((www.cbs.marketwatch.comwww.cbs.marketwatch.com))

ContextAesthetically

dominantIntegrated

Content Product-dominant Service-dominant

Community Nonexistent Limited Strong

Customization Generic Highly customized

Communication

One-to-many,

responding user

One-to-one, nonresponding

user

One-to-one, responding user

Connection Destination Hub Portal

Commerce Low Medium High

FunctionallyDominant

Information -dominant

Strong

Moderatelycustomized

Strong

Low

One-to-manyNonresponding

user

5-45Exhibit 5-26: CBS MarketWatch.com HomepageExhibit 5-26: CBS MarketWatch.com Homepage