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Chapter 4
Customer Interface
e-commerce
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Overview of Customer Interface
– Technology-mediated customer interface
– Shift to “screen-to-face” interface
– Types of interfaces available
– “Look-and-feel” of the website
– Commerce activities
– Communities in the business model
– 7Cs framework
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Questions
What are the seven design elements to the customer interface?
What are the alternative “look-and-feel” approaches to design?
What are the five content archetypes?
Why be concerned with community?
What are the levers used to customize a site?
What types of communication can a firm maintain with its customer base?
How does a firm connect with other businesses?
What are alternative pricing models of commerce archetypes?
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Seven Design Elements
The 7Cs Framework for customer designInterface is the virtual interfaceWorth visiting?What products or services?What messages does it communicate: exclusivity, low price, or ease of use?
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Definitions and Simple Illustrations
Context – aesthetic and functional look and feel
Content – digital subject matter such as text, video, audio, graphics
Community – interaction between users
Customization – tailor itself or be tailored by user
Communication – dialogue between site and users
Connection – formal linkages between sites
Commerce – sale of goods, products services on site
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The 7Cs of the 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 web pages contain
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Building Fit and Reinforcement
Fit – extent each of 7Cs individually support the business model Reinforcement – aesthetic context of the site
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Fit and Reinforcement of Cs
ContextContext ContentContent CommunityCommunity CustomizationCustomization CommunicationCommunication ConnectionConnection CommerceCommerce
Business ModelBusiness Model
Consistent Reinforcement
Individually Supporting Fit
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Performance of Lands’ End Site
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Look-and-Feel of the Design
Context
– Look and feel of a screen-to-face customer interface
– Includes website, PDA, cell phone
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Dimensions to Context
Function Organized into sets of pages Provides means to navigate through pages Section breakdown Linking structure Navigation tools Performance dimensions
– Speed – site page
– Reliability – lack of downtime
– Platform independence
– Media accessibility – download in various platforms
– Usability – navigation ease
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Aesthetic and Tips
Aesthetic Color scheme Visual themes
Usability Tips and Tricks Quick Easy Search capability Get outside opinion Clear categories Clear product names
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Exhibit 4-4: Form vs. Function — The Design Context Frontier
Integrated
Aesthetically Dominant
HighLow
High
Low
FUNCTION
AESTHETIC/FORM
Functionally-Dominant
Frontier is gradually moving
outward as technology advances
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Aesthetic Example — KMGI.com
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Context archetypes
Broad, generic approaches to context design
New technologies introduce new techniques, introduce new aesthetics
Aesthetically dominant – look-and-feel, high form, low function
Functionally dominant – low form, high function
Integrated - balance of form and function
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Functional Dominant — Brint.com
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Integrated Approach Example — Patagonia.com
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Point-Counterpoint
Can Maximize Both Cannot Maximize Both
Technology makes tradeoff irrelevant Case studies of firms that do both (Reflect.com) More pleasing to customers when both are
accomplished
Inherent tradeoffs in design choice Firms should focus on one dimension Segments gravitate toward one dimension
Point-Counterpoint: Form vs. Function
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Five Content Archetypes
Content Dimensions to Content Offering mix – product, information,
and/or services Appeal mix – promotional and
communication messaging Multimedia mix – text, audio, image,
video, and graphics choices Content type – time-sensitivity
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Content Archetypes
Offering Dominant Superstore Category killer Specialty store Information-dominant – information, but
may have entertainment Market-dominant – market for buyers
and sellers
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A Framework to Understand Offering-Dominating Archetypes
Superstore
CategoryKiller
SpecialtyStore
NUMBER OF PRODUCT
CATEGORIES
Multiple
Single
Narrow Broad
DEPTH OF PRODUCT LINE
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Superstore Example — Amazon.com
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Category Killer Example — Petsmart.com
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Specialty Store Example — Frontgate.com
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Information Dominant — Business 2.0 (www.business2.com)
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Market Dominant Example — PlasticsNet.com
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PhysicalProduct
Information Service
Superstore Walmart.com CEOExpress.com IBMSolutions.com
Category Killer Petsmart.com DowJones.com Schwab.com
Specialty Frontgate.com Tnbt.com Tradex.com
Information andEntertainment Census.gov IFilm.net Digitalthink.com
Market Maker PlasticsNet.com VerticalNet.com Monster.com
Drill Down - Content Archetypes vs. Offering Types
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Point-Counterpoint
Content Is King Content Is Not King
All leading web sites have excellent content Users will be able to discern inferior content due
to network effects Word-of-mouth will drive out poor content There are multiple “great” content plays – e.g.,
most timely, best coverage, etc. -- that reflecteach of value models
Necessary but not sufficent It’s not about content, it’s about number of users Standards can block emergence of “better
content” players Up-to-date “good” content will always beat out
not as up-to-date “excellent” content Content means “everything” and hence has lost
all meaning
Point-Counterpoint: Is Content King?
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A Community
Community
– A feeling of membership
– Strong sense of involvement
– User-to-user communication
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Elements of a community
– Cohesion
– Effectiveness
– Help
– Relationship
– Language
– Self-regulation
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Types of communities
– Just friends
– Enthusiasts
– Friends in need
– Players
– Traders
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Degree of Member Participation
– Passive
– Active
– Motivated
– Caretakers
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Member Benefits
– Need fulfillment
– Inclusion
– Mutual influence
– Shared emotional experience
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Dimensions of community
– Interactive community
– Chat
– Instant messaging
– Message boards
– Member-to-member e-mail
– Noninteractive communication
– Public member webpages
– Member content
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Communities — Elements, Types, and Benefits
Elements of Community
Types ofCommunities
Member Outcomes: Participation and Benefits
• Cohesion
• Effectiveness
• Help
• Relationships
• Language
• Self-regulation
Just Friends
Friends inNeed
Enthusiasts
Players
Traders
Need Fulfillment
• Inclusion
• Mutual Influence
• Shared Emotional Experiences
Degree ofParticipation
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Community Archetypes
– Bazaar – wander but not interact
– Theme park – finite number of areas organized by categories and subcategories
– Club – highly focused on only one areas of interest, promoting interaction among members
– Shrine – highly focused community with minimal interaction
– Theatre – focused in area but allows for moderate interaction
– Café – focused on common area of interest but provides considerable interaction among members
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Bazaar Example — Games.Yahoo.com
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Theme Park Example — VoxCap.com
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Club Example — Gillette Women’s Cancer Connection
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Shrine Example — The Unofficial Dawson’s Creek Web Site
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Theater Example — iFilm.com
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Cafe Example — Bolt.com
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Drill Down - Focus vs. Interactivity
Bazaar
Theme Park
Mall
Shrine Theater Cafe
INTERACTIVITY
FO
CU
S
Bolt.comBolt.comVoxCap.comVoxCap.com
iFilm.comiFilm.com
Trace.comTrace.com
ContactConsortium.com
ContactConsortium.comGames.yahoo.comGames.yahoo.com
No
n-e
qu
ilib
riu
m s
tate
:
Su
cc
es
sfu
lly
-ma
na
ge
d
co
mm
un
itie
s w
ill
mo
ve
to
wa
rd
hig
he
r le
ve
ls o
f in
tera
cti
on
Women’s CancerConnection
Women’s CancerConnection
leonardodicaprio.comleonardodicaprio.com
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The Levers Used to Customize a Site
Customization
– Dimensions of customization
– Personalization
– Log-in registration
– Cookies
– Personalized e-mail accounts
– Content and layout configuration
– Storage
– Agents Tailor by site
– Tailoring based on past user behavior
– Tailoring based on behavior of other users with similar preferences
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Customization Types
– Personalization by user Consciously articulated Acted upon preferences
– Tailoring by site Reconfigure past behavior Reconfigure by other users of
similar profiles
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Personalization by User Example — mylook.com
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Tailoring by Site Example - Amazon.com
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Karman Parsaye’s Measuring Personalization Quotient
– Customization (PQ1) – individual preferences
– Individualization (PQ2) – based on users behavior
– Group characteristics (PQ3) – based on preferences of others with similar interests
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Types of Communication a Firm Can Maintain with its Customer Base
Communication
– Dimensions of communication
– Broadcast
– Mass mailings
– FAQ
– E-mail newsletters
– Content-update reminders
– Broadcast events
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Communication ...
Interactive
– e-commerce dialogue
– Customer services
– User input Hybrid
– Combines broadcast and interactive
– Often “freeware” use as marketing
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Communication Archetypes
– One-to-many nonresponding user – mass mailings targeted to user
– One-to-many, responding user – mass mailings targeted to defined audiences
– One-to-many, live interaction – live information exchanged in real-time
– One-to-one, nonresponding user – personalized messages to specific user needs or interests
– One-to-one, responding user – specific use interests or needs
– One-to-one, living interaction – sends and receives personalized user messages or carries on chat sessions addressing specific user needs or interests
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One-to-Many, Non-Responding Example — theStandard.com
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One-to-Many, Responding User Example — BizRate.com
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One-to-Many, Live Interaction Example —
Accrue 2000 Web Seminar
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One-to-One, Non-Responding User Example — Hallmark.com
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Exhibit 4-28: One-to-One, Responding User Example —
Amazon.com
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Exhibit 4-29: One-to-One, Live Interaction Example —
LivePerson.com
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A Firm’s Connection with Other Businesses
– Connection
– Degree site is able to link to other sites
– Embedded, links maybe on serve or another server
– Dimensions of connection Links to sites Home site background Outsourced content Percent of home site content Pathway of connection Pathway of
connection
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Communication Archetypes
– One-to-many nonresponding user mass mailings targeted to user
– One-to-many, responding user mass mailings targeted to defined audiences
– One-to-many, live interaction live information exchanged in real-time
– One-to-one, nonresponding user personalized messages to specific user needs or interests
– One-to-one, responding user specific use interests or needs
– One-to-one, living interaction sends and receives personalized user messages or carries on chat sessions
addressing specific user needs or interests
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A Firm’s Connection with Other Businesses
Connection
– Degree site is able to link to other sites
– Embedded, links maybe on serve or another server
– Dimensions of connection
– Links to sites
– Home site background
– Outsourced content
– Percent of home site content
– Pathway of connection
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Connection archetypes
– Destination site site generated with few links
– Hub site combination of site-generated and links to selective
sites
– Portal site absolute links to large numbers of other sites
– Affiliate program direct users through links or site banners or other ads
– Outsourced content generated by third parties
– Meta-software utility and plug-in software application creation
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Destination Example — NYTimes.com
[Please insert Exhibit 4-30 here] [Please insert Exhibit 4-31 here] [Please insert Exhibit 4-32 here]
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Hub Example — DrKoop.com
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Portal Example — Yahoo.com
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Affiliate Program Example — Onhealth.com and Proflowers.com
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Outsourced Content Example — Real.com
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Meta-software Example — RUSure.com
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Alternative Pricing Modes of Commerce Archetypes
– Commerce Support aspects of trading
transactions Focused on tools Alternative pricing strategies
– Dimensions of commerce Registration Shopping cart Security Credit-card approval One-click shopping Orders through affiliates Configuration technology Order tracking Delivery options
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Commerce Archetypes
– Catalog pricing preset by the seller
– Auction pricing highest bidder wins
– Reverse auction pricing sellers bid against each other
– Demand aggregation pricing buyer demand is aggregated to achieve
economies of scale
– Haggle pricing users and site negotiate over price
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Offline integration of the customer interface
– Context look –and-feel of the physical store
– Content products, services, associated information
– Community communication between customers and staff
– Customization personalized customer products, services, personalized credit-cards,
recognition and privileges at restaurants, airlines, catalogs, and other stores
– Connection degree connected to other offline stores
– Commerce transaction capabilities of a store, Dutch and English auction, demand
aggregation, prepurchase, and remarketed
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Drill Down - Commerce Origination vs. Facilitation
Commerce OriginationCommerce OriginationCommerce OriginationCommerce Origination
Commerce originating at a site. It is achieved through acquisition of new customers and loyalty building among existing customers
New Customer Acquisition Tools include:– Online advertising
– Banner ads at other sites– URL listing in industry catalogs– Sponsorships of online events or of other
site activities– Viral marketing
– Marketing with the assistance of existing customers, who pass marketing messages along to friends or colleagues
– Examples include marketing footers at the end of user email messages, prompts inviting users to send the site URL or the output of their activity on the site to others
– Offline advertising– Advertisements on radio, television, movie
theaters– Sponsorships of offline events, such as
conferences on the New Economy
Commerce originating at a site. It is achieved through acquisition of new customers and loyalty building among existing customers
New Customer Acquisition Tools include:– Online advertising
– Banner ads at other sites– URL listing in industry catalogs– Sponsorships of online events or of other
site activities– Viral marketing
– Marketing with the assistance of existing customers, who pass marketing messages along to friends or colleagues
– Examples include marketing footers at the end of user email messages, prompts inviting users to send the site URL or the output of their activity on the site to others
– Offline advertising– Advertisements on radio, television, movie
theaters– Sponsorships of offline events, such as
conferences on the New Economy
Commerce FacilitationCommerce FacilitationCommerce FacilitationCommerce Facilitation
Commerce facilitated through the intervention of a third party, directing traffic to a site. It can be achieved through affiliations and partnerships
Affiliations / Partnerships– How they work
– Home site signs up other sites in a partnership/affiliation program
– Affiliate sites place a link on their site that directs users to the home site
– In some cases, a user gets directed to a site through an affiliate while remaining in the affiliate’s URL space
– Participating affiliate sites receive a percentage cut (typically 5-10%) on all sales generated at the home site as a result of click throughs from the affiliate sites
– Incentives to affiliates– Financial: Affiliate sites receive a
percentage of the sales they generate– Brand building: Being an affiliate to a well-
known brand increases visibility– Improved capabilities: By linking users to
additional sites, affiliates can increase their breadth of offerings
Commerce facilitated through the intervention of a third party, directing traffic to a site. It can be achieved through affiliations and partnerships
Affiliations / Partnerships– How they work
– Home site signs up other sites in a partnership/affiliation program
– Affiliate sites place a link on their site that directs users to the home site
– In some cases, a user gets directed to a site through an affiliate while remaining in the affiliate’s URL space
– Participating affiliate sites receive a percentage cut (typically 5-10%) on all sales generated at the home site as a result of click throughs from the affiliate sites
– Incentives to affiliates– Financial: Affiliate sites receive a
percentage of the sales they generate– Brand building: Being an affiliate to a well-
known brand increases visibility– Improved capabilities: By linking users to
additional sites, affiliates can increase their breadth of offerings
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Schwab’s Customer Interface
– Context Highly functional look-and-feel Little attention to aesthetics Quick location and process information
– Content Category killer Information dominant Fits value proposition
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Schwab’s Customer Interface...
– Community Not offered on its site Site provides all necessary information
– Customization Personalization tools Fits with user friendly platform
– Communication Number of communication venues between use an
site Learning Center Quarterly Investment Magazine Live investment forums Real-time customer service through phone service
and in-branch Connection A number offered Hub for mutual funds Original content and tools Outsources some content such as stock analyzer Hoovers Online
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Schwab’s Customer Interface...
– Commerce Catalog model Commission discounts to certain traders
with volume Advanced software applications
– Reinforcement among Schwab’s 7Cs Site content reinforces its content Highly functional layout Reinforces context
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7Cs of Schwab
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