Chapter Four E-Customer, Relationship and Interactivity

 

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The E-Business, the E-Customer, their Relationship and Interactivity

 

 

KunnskapskildenE-Business –
E-Business, E-Customer, Relationship and Interactivity

 

Dissertation
The E-Business, the E-Customer,
their Relationship and Interactivity 

Jan Vig 

Dissertation  av Jan Vig om E.Business, E-Customer, Relationship and Interactivity  (286 sider) i forbindelse med Masterstudie i Information Technology and Communication Juni 2000.

 

The E-Retailer Business, the E-Customer,
their Relationship and Interactivity

Table of Contents

Chapter One Introduction to the study

Chapter Two Business in Cyberspace

Chapter Three E- Retailer Commerce

Chapter Four E-Customer, Relationship and Interactivity

Chapter Five A Successful Case study – Amazon.com

Chapter Six The Future, Critical Success Factors, E-Business Strategy, Results and Conclusion

Appendix

 

 

Chapter 4

The E-Customer, the Relationship and Interactivity 

 

 

 

Chapter Four E-Customer, Relationship and Interactivity

4.1 Introduction 108
4.2 The E-Customer 111
4.2.1 The E-Customer 111
4.2.2 The E-Customer and Benefits 113
4.2.3 The E-Customer behavior 114
4.2.4 The E-Customer and shopping 121
4.2.5 The E-Customer and shopping agents 123
4.2.6 The E-Customer and privacy 126
4.3 One-to-One Marketing and CRM 130
4.3.1 CRM 130
4.3.2 History One-to-one Marketing 132
4.3.3 Current Situation 133
4.3.4 Why is One-to-one marketing important today? 135
4.3.5 One-to-one marketing, trends and technology 136
4.3.6 One-to-one marketing tools 138
4.3.7 Benefits of One-to-one Marketing/CRM 138
4.3.8 Arguments against One-to-one marketing 140
4.3.9 Examples on One-to-one marketing 141
4.3.10 Implementing One-to-one marketing 143
4.4 E-Retailing, relationship, customer focus and customer experience 145
4.4.1 The E-Retailing and relationship 145
4.4.2 Personalisation 148
4.4.3 Create a great customer experience 152
4.5 The Customer led E-Retailer Web Site 155
4.6 Summary

 

One of the conclusions which is obvious is that the retailers that are going online will have a lot of challenges and most of them are not prepared for what is going to happen. The customer-led revolution will take most of them with surprise. Traditional retailers are acting slow, they do not understand or try to understand the new way to do shopping, and a lot are only waiting and thinking everything will be as it is. A lot of retailers is taking by surprise, because they have a organisation that is thinking in a traditional way instead of being innovative and most of them are adapting to models that perhaps at the moment are successfully, but will have to change as the customers position are getting stronger.
A lot of the retailers don’t know to much about segmentation, and integrating CRM software will not help them much if they not doing a better job in analysing the data they collect “for” the customer not “about” them.

 

It will be more and more important and critical to create great customer experience and get loyal customers, but also more difficult. In the new digital world, the E-Customer will have all the power. Because of this the monitoring and coming up with solutions in the interactive marketplace will be crucial. The pace of change will rapidly bring new partnerships, relationships, new technologies and new possibilities. That means the successful E-Retailer has to be proactive not reactive as often the case is.

 

It is important for the E-Retailers to study research reports and demographics about the behavior of the E-Customer. A lot of reports are available online. The attitude of the E-Customers are changing rapidly, because of more and more possibilities to shop for the best prices and because they easily  ‘click away’ to shop by competitors if they are not satisfied.

The E-Customer of tomorrow will not be loyal in the same way as before and the E-Retailer has to do a lot more work than today both in understanding and keeping the E-Customers.

 

The agent technology will also get a greater significance. E-commerce will not get the necessary efficiency without the services the agents will be able to offer. The quantity of information is enormous and all of us have to get help to manage it.

 

The use of agents will increase because they do the tasks for companies and customers more efficiently, more convenient, fast and user-friendly. But a human being has to trust these agents because the human being wants security, control and understanding. The customers has to be sure that nothing will be missed, changed or done in a wrong way if and when the agents should take over the buying process. Intelligent agents have a great potential, but they aren’t at all fully developed.

 

E-Retailers have to create customer oriented business processes to succeed. That means it is critical for the E-Retailer to design and implement procedures that are satisfying the needs the customers have.

E-Retailers have to assure that the business processes are function in the way they should:

  • Design processes for customers, not for themselves
  • Use the customer’s knowledge
  • Let customers, suppliers and service providers help
  • Collaborate with suppliers and service providers
  • Make sure that security is assured
  • Select the right products and make sure they are bought
  • Triggering orders
  • Handling payments
  • Delivering the goods
  • Receiving feedback

 

 

 

The E-Retailers have to keep the promises they make concerning for instance delivery and time.  Successfully E-Retailers offer also build-to-order products and personalisation. The focus is on creating lasting relationship. E-Retailers that ask their E-Customers for personal information must form an explicit bargain with them that their information will be used within the company only on a need-to-know basis. E-Retailers that fail to protect their customers’ information are asking for trouble. The E-Retailer needs to have the ability to absorb the data they gather from the customer, analyse them and offer personalisation. That means that a company’s investment has to be in infrastructure, tools and time. The return is from repeat business. The challenge, then, is to make sure the investment scales to provide the solution to 5.000 people as easily as 20. Good personalisation requires the system to know a lot about the user.

 

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