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Topic 8 : E-Commerce and the Entrepreneur - Coggle Diagram
Topic 8 : E-Commerce and the Entrepreneur
Understanding the factors an entrepreneur should consider before launching into e-commerce
A . How a company exploits the Web’s interconnectivity and the opportunities it creates to transform relationships with suppliers, customers, and others is crucial to its success.
B . Web success requires a company to develop a plan for integrating the Web into its overall strategy.
C . Developing deep, lasting relationships with customers takes on even greater importance.
D . Creating a meaningful presence on the Web requires an ongoing investment of resources – time, money, energy, and talent.
E . Measuring the success of a Web-based sales effort is essential to remaining relevant to customers whose tastes, needs, and preferences constantly change.
10 myth of e-commerce and how to avoid falling victim to them
Myth 1 If I launch a site, customers will flock to it.
Network - build relationships with other companies, customers, trade associations, online directories, and other Web sites to interact with customers
Use social media such as Facebook and Youtube to attract more customer into the site
Myth 2 Online customers are easy to please.
Online shoppers tend to be unforgiving and quick click to another site if their shopping experience is subpar or they cannot find the products and information they want.
Seller need to find ways to capture their attention till they buy the product
Myth 3 Making money on the Web is easy.
Success business requires a sound business strategy that is aimed at the appropriate target audience and that is implemented effectively and efficiently.
The same elements are required for success offline
Myth 4 Privacy is not an important issue.
Online shoppers have abandoned their shopping carts because of security concerns.
Myth 5 I don’t need a strategy to sell online.
Online strategy is critical to success
--> Define the target audience
--> Understand customers needs and wants
--> Create a strategy to set your site apart from others
Myth 6 The most important part of an e-commerce effort is technology.
Understand the underlying business…then use technology to develop an online business model that provides customer value in a profitable way.
Myth 7 Customer service is not important
Customers say that live help is one of the most important features a Web site can offer.
Myth 8 Flashy Websites are better than simple ones
.
Simple design, easy navigation, clear calls to action on every page, and consistent color schemes show that a company is putting customers first.
Myth 9 It’s what’s up front that counts.
Order systems and support are critical.
Myth 10 My business doesn’t need a Website.
A multichannel approach to selling is important.
The basic strategies entrepreneurs should follow
Focus on a market niche.
Develop a community.
Listen to your customers and act on what you hear.
Attract visitors by giving away “freebies.”
Sell the “experience.”
Make creative use of e-mail but avoid becoming a “spammer.”
Make sure your Web site says “credibility.”
Allow visitors to verify easily the accuracy of the information on your site.
Show that there are real people behind your site.
Emphasize the skills, experience, and knowledge of the people in your company.
Show that honest, trustworthy people stand behind your site.
Make it easy for customers to contact you.
Make sure your site has a professional look.
Technique of designing a Web site
Offer suggestions for related products.
Add wish list capability.
Give customers what they want.
Use online videos.
Understand your target customer.
Give shoppers the ability to track their orders online.
Build loyalty by giving online customers a reason to return to your Web site.
E- commerce : Buying and selling goods and services online
How e-businesses ensure the privacy and security
Ensuring Web Privacy
Take an inventory of the customer data collected.
Develop a company policy for the information you collect.
Post your company’s privacy policy prominently on your Web site and follow it.
Ensuring Web Security
1. Virus detection software
: Program that scan computer drive for viruses or nasty programs, written by devious hackers and designed to harm computers and the information they contain.
2. Intrusion detection software
: Program that constantly monitor the activity on the company's network server and sound an alert if they detect someone breaking into the system or if they detect unusual network activity
3. Firewall
: A combination of hardware and software that allows employees to have access to the internet but keep unauthorize users from entering a company's network and the program and data it contain.
Secure Sockets Layer (SSL) Technology
: An encryption device that secure customers transaction information as its travel across the internet
How companies track the result from their web sites
Web analytics:
Tools that measure a Web site’s ability to attract customers, generate sales
Visitor segmentation measurements : Information whether they are return customers or new customers, how they arrive at that site
Content reports :
1.Which products?
Which pages they view most often(less often)?
3.How they navigate in the site?
4.How long they stay in the site?
Process measurement :
How their websites attract visitors and convert them into customer .
Does check out process work smoothly ?
How often do shoppers abandon their cart ?