Ecommerce recap

B2B l Business to Business l EDI l Replacing paper documents – Orders, LOC, invoices, Bills of lading, receipts, certificates etc l Many advantages – Just in time – Better information – Easier sales process l Banks act as trusted third party

Remote transaction Customer Manufacturer Customer’s Bank 1. Please issue LoC: Here is deposit 2. LoC: “Pay bearer after 30 days if you have Bill of lading and Inspection Certificate 3. Order +LoC Shipper 4. Goods 5. Bill of Lading Correspondent Bank Inspector 6. Bill of Lading 7. Bill of Lading 8 Money 9. Goods 6. Bill of Lading Trust relationship and mutual accounts

B2B l Slow progress l International standards l Many large players – CHAPS (banking), CREST (shares)

M2M l Machine to Machine l Just beginning – Washing machine Maintenance Ordering washing powder Negotiating electricity Communicating with users cellphone

B2C l Business to Consumer l Like mail order l Relies on trusted payment mechanism – Credit card, paypal l Reputation is valuable and leads to oligarchy l Consumer Protection (Distance Selling) Regulations 2000 l Many advantages – Potentially global market – Maybe 29% efficiency gains Disintermediation, customer order entry, stock control, instant feedback etc

More Topics l Network effect – Site visitors-> advertising->content-> site visitors – Liquidity l Business models (monetisation) – Landgrab, Merchant, Freemiun, Advertising, Lottery l Legals: online contracts – Authentication, record keeping/audit trail Jurisdiction; relevant law and place l Driving Traffic – Search engine position – External advertising

Sales funnel Prospects ContactDemo/TrialNegotiateClose Satisfaction AIDA modelAwarenessInterestDesire Action Satisfaction ImpressionClick throughRegisterDemo Purchase Satisfaction

Web site design should aid purchase process PhaseTypical message or action 1.Recognition of the problem Target likely customers 2. Information search Search engine position Paper and Magazine articles 3. EvaluationTestimonials, accreditation 4. DecisionSpecial Offers and trial 5. Purchase Easy purchase route; payment options; trial +refund 6. Customer relationship managementBulletin board, satisfaction survey

Analytics l Instrument your site – Understand customer behaviour l Separate landing pages – Google analytics;

Typical behaviour l 100,000 impressions l 1% clicks/new visitors (CTR) – About the same as mail shot – CPC costs maybe $0.5 – $5 l 5% - 50 register/trial – Depends how hard registration is. l 2%- 1 Purchase l CPA ~$500 - $5000 l

Future battles l Apps vs HTML5 l Local vs Cloud – Buy or rent software? l Fixed line vs mobile – Wifi vs LTE l Developing stuff – M2M – 3D – “augmented reality” – Clean and green – Search/filter

Issues and opportunities l Privacy, identity, control, civil liberty l Infrastructure capacity l Copyright overload and other IPR issues l Understanding social behaviour l Junk and spam