1 Chapter 8 Channels in ecommerce

Learning objectives  Different channels that are available for ecommerce  How to manage multiple sales in ecommerce  How to blend channels for growth and profitability 2

Introduction  Channel for marketing is a mix of field sales, retail, business partners, direct marketing, call center, and electronic media  This is already happening in In industries such as digital, technology, retail, and financial services  This implies to grow profitably and effectively, it will require a mixture of optimized channels  The optimization will lower selling costs, happier customers, and more reliable results 3

CASE : Airtel  The company initially dealt with automating customer billing processes only. The marketing was done through sales force through direct marketing route. Then it adopted mass communication channels such as TV, digital banner to attract customers. Now a combination of third party business partners, such as stationary shop owners who their own office space to sell ‘recharge vouchers’ to individuals and its own key customer account sales forces along with banner advertisements in different internet websites and call center channels to generate demand and support business partners. 4

e-commerce in multichannel marketing  e-commerce portals need to collect data for each and every sale  these data generate information so that proper managerial decision is taken  These decisions help improve sales for the organization  Channels come in many different types and roles  Sales channel  Service channels  Direct marketing channel  Business partner channel  Ecommerce channel  Tele marketing channel  Call centre based channel  based channel  SMS based channel  combine these call center and electronic channels with traditional field sales, retail, and distribution partners into multichannel selling systems 5

e-commerce in multichannel marketing...contd..  internet penetration and consumers becoming are tech savvy  can support both direct selling and indirect selling  Dell vs HP : unlike Dell, which thrusts its marketing only on e-commerce, HP has decided to use multi channel marketing so as to get maximum market share in personal computer industry - “hybrid” process had a 50 percent close rate  Hybrid reduces  conflicts between selling channels,  lost sales leads that fall through the cracks,  gaps in market coverage  focus from building channels to integrate channels  Such hybrid channels reduce  Salespeople in different channels will compete for the same business;  Leads might not be followed up for converting them to customers;  Inconsistencies in customer relationship management;  Ineffective integration of channels because of which there could be revenue leaks. 6

e-commerce in multichannel marketing...contd..  To be effective in multichannel system, e-commerce should define  Service Level Agreements (SLA) for each channel  new incentive plans that encourage people in different channels to work together  strategizing the entire potential market  defining new rules and channel policies 7

Order fulfilment through ecommerce  Integrated environment so as to build partnerships with its vendors, sub-contractors, logistics providers as well as its customers  helps its stakeholders in increasing their value proposition  long term business strategic partnership is developed  Provides support with different degree of customization to suit the partners specific requirements  customers are offered a choice of different levels of support to suit their specific requirements  Project management tools help to provide a detailed plan and schedule for the implementation program 8

Order fulfilment through ecommerce..contd..  Ecommerce portals provide required training and skills to their partners  impart online training modules  Online training reduces time involved in logistics  continuously fine-tuned to enhance response to market needs  Inventory Management through the portal  Helps in Inbound Planning Process  Inquire into expected receipts against purchase orders or Advance Shipment Notices (ASN)  (Re) print receiving worksheets for an ASN  Create or modify ASNs  Create LPN's (License Plate Numbers)  Schedule docks and workers for unloading  Enter, modify or change the status of ASN's 9

Order fulfilment through ecommerce..contd..  Consolidating Orders through the portal  Load Planning Module (LPM) tools help in consolidation  LPM considers trailer availability, customer and SKU loading constraints to plan loads  Warehouse level inventory allocation is done for the load  Shipments can be grouped  e-commerce portal in supply chain  Builds long-term strategic relationships with all the business partners including customers  Recognizes and rewards team efforts  Easy to use and implement  Flexible, modular and scaleable  Open systems, client/server 10

CASE: Carwale.com and Cardekho.com Points to be discussed  Research on suitable model based on  Price  Model  Features  Prospect to converts  Scheduling of test drives  Options provided  Colour  Model  Financial 11

Case: Cafe Coffee Day Discuss  New business model in coffee  New experience for all stakeholders  Order fulfilment  Value propositions to all partners 12

Summary We discussed-  role of e-commerce in a multi channel systems  Using technology improve effective conversion rate  information does not fall through cracks  improving predictability, sustainability and accuracy of results 13