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Get the best out of B2C.

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Introduction

TABLE OF CONTENT GET THE BEST OUT OF B2C 2 PREFACE 2 GENERAL INTRODUCTION TO B2C 2 COMPANY BRIEF 3 BUSINESS MODEL 4 VALUE CLUSTER 5 CUSTOMER INTERFACE 8 KEY FACTORS TO SUCCESS 10 CONCLUSION: 10 NOTES AND REFERENCE: 12 GET THE BEST OUT OF B2C Preface Over the last few years, many words have come into our vocabulary: e-mail, www, dotcom, Internet, e-commerce, e-business, browser, etc. All these new terms have one thing in common, belonging to the new economy --- e-commerce --- technology-mediated exchanges between parities (individuals, organizations, or both) as well as the electronically based intra- or inter-organizational activities that facilitate such exchangesO1. The Internet has brought along new challenges for companies around the world. Never before has it been easier for a company to find customers for the products it is selling, or for customers to find the company. The Internet has also brought along many new companies who understand the possibilities that the new economy has to offer. It is moving fast, no doubt about that, but where is it going and how will it end? In this report, I will compare and discuss the B2C model of the 2 chosen companies, who are dealing with computer hardware, TigerDirect (www.tigerdirect.com) and Logitech (www.logitech.com). Looking at their e-commerce strategy, business models and customer interface, I will try to find out their key factors of being a successful dot.com company. General Introduction to B2C There are 4 distinct categories can be identified O2: business-to-business, business-to-consumer, consumer-to-consumer, and consumer-to-business (Figure 2.1) While the term e-commerce refers to all online transactions, B2C stands for "business-to-consumer" and applies to any business or organization that sells its products or services to consumers over the Internet for his/her own use. A study by the consulting firm the Boston Group pegged the 1999 B2C volume at $33.1 billion and estimated it almost doubled to $61 billion in 2000 O3; equally important is the finding that 85 percent of Internet users are also Internet shoppers O4. ...read more.

Middle

It aims to maintain strong holding of customer loyalty in long-term. Furthermore, constant products innovation keeps its web page remaining highly attractive to those Logitech fans. 3. The rationale for delivering benefit package. How can a firm beat his/her competitors? In contrast to segment choice and benefits, this step focuses on factors inside the firm (or with partners) that lead to the superior delivery of targeted benefits. The key issue is whether these unique capabilities can be linked directly to the core benefit or benefits that form the value proposition O13. TigerDirect build its way to success though the following aspects O14: * Use combination of Internet marketing, relationship marketing and inbound catalog sales to offer more than 40,000 products to its two million customers. Through its Be Free-powered partner marketing program, TigerDirect cost-effectively acquires new online customers and drives significant sales to its web catalog at www.TigerDirect.com * ?Rely solely on grassroots and word-of-mouth advertising to promote its program. Through Be Free's robust partner recruitment initiatives, TigerDirect.com has experienced a significant increase in the number of marketing partners recruited into its sales channel. In fact, 30% of its affiliate partners were recruited by Be Free's FastApp recruiting tool alone * ?In addition to the standard BFAST partner marketing service, TigerDirect.com uses Be Free's Auto-Merchandiser technology to automatically push dynamic promotions out through its online marketing partners and optimize the rotation of these promotions to help push higher margin items and thus, generate more profitable sales. This feature allows TigerDirect.com to see a higher ROI for its partner-marketing program TigerDirect.com has experienced a 400% percent increase in web-based sales over the last year; its performance-based partner marketing program contributes a large portion of this increase. On the other hand, as an extremely successful company in the PC hardware market, Logitech.com aims to offer the outstanding products that a consumer is looking for, it maintains a quite high-level standard, as said by Logitech chief financial officer Kristen Onken, "We're our own worst enemy, because nothing meets the standards we set for ourselves. ...read more.

Conclusion

Hang out in the newsgroups and in customer discussion forums may help > Order delivery --- Assuming that product is physical and not digitally downloadable, web fulfillments will also handle delivery, or choose to directly engage a conventional courier service like FedEx or DHL. As provided by both of the 2 above websites, one of the most attractive features that you can provide for your online customers in this space is online order tracking. Enabling customers to find out where their parcel is and when it will be delivered is a no-brainer for a company already providing online ordering facilities. Another point is to think about the delivery options that can be offered to end-users; both expensive next-day delivery and less costly, longer delivery periods should be available so to maintain customers for whom immediate fulfillment is a low priority. Conclusion: In a whole, after overview of the currently on-line B2C business, we may find that the major challenges of B2C lie in O19: * Getting browsers to buy things - your e-commerce site cannot live on traffic alone. Getting visitors to the site is only half the battle. Whether they buy something is what determines whether you win. The so-called conversion rate for B2C e-commerce sites is still fairly low (Boston-based Yankee Group said in November 2000 that the average rate was 1 percent.). Some ways to boost your conversion rate include improving navigation, simplifying checkout process (such as one-step checkout and easily replaced passwords), and sending out e-mails with special offers * Building customer loyalty - with so many sites out there, how can you build a strong relationship with customers? Here are some tips: 1. Focus on personalization: Wide arrays of software packages are available to help e-commerce sites create unique boutiques that target specific customers. For example, American Airlines has personalized its website so that business fliers view it as a business airline and leisure travelers see it as a vacation site. ...read more.

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