1. E- Business Ninth Edition
Chapter 4 E-Business Revenue Models 1

2. Learning Objectives In this chapter, you will learn about:
Revenue models
How some companies move from one revenue model to another to achieve success
Revenue strategy issues that companies face when selling on the Web
Creating an effective business presence on the Web
Web site usability
Communicating effectively with customers on the Web
E- Business, Ninth Edition

3. Revenue Models Web business revenue-generating models
Web catalog
Digital content
Advertising-supported
Advertising-subscription mixed
Fee-based
Can work for both sale types
Business-to-consumer (B2C)
Business-to-business (B2B)
Can use same revenue model for both types of sales
E- Business, Ninth Edition

4. Web Catalog Revenue Models
Adapted from mail-order (catalog) model
Seller establishes brand image
Printed information mailed to prospective buyers
Orders placed by mail or toll-free telephone number
Expands traditional model
Replaces or supplements print catalogs
Offers flexibility
Orders placed through Web site or telephone
Payments made though Web site, telephone, or mail
Creates additional sales outlet for existing companies
E- Business, Ninth Edition

5. Web Catalog Revenue Models (cont’d.)
Computers and consumer electronics
Leading computer manufacturers
Sell a full range of products on the Web
Dell allows product configuration flexibility
Creates value
Crutchfield
Expanded successful mail-order catalog operations to include Web sites
Best Buy, J&R Music World, Radio Shack
Web sites sell same products as in stores
E- Business, Ninth Edition

6. Web Catalog Revenue Models (cont’d.)
Computers and consumer electronics (cont’d.)
Marketing channel
Pathway to customers
Advantage of having several marketing channels
Reach more customers at less cost
Can combine marketing channels
Example: in-store online ordering
Example: mail catalogs with reference to retailer’s Web site
E- Business, Ninth Edition 6

7. FIGURE 4-1 Combining marketing channels: Two retailer examples
E- Business, Ninth Edition 7

8. Web Catalog Revenue Models (cont’d.)
Books, music, and videos
Most visible electronic commerce examples
Amazon.com Web-only retailer originally sold books
Evolved into general retailer
Barnes & Noble, Blackwell’s, Books-A-Million, Powell’s Books
All adopted Web catalog revenue model
CDnow Web-only online music store
CD Universe copied CDnow approach
Tower Records, Sam Goody retail stores
Created Web sites to compete with CDnow
E- Business, Ninth Edition

9. Web Catalog Revenue Models (cont’d.)
Luxury goods
Difficult to sell online
Customers want to see product in person or touch
Vera Wang and Versace
Web sites provide information
Shopper purchases at physical store
Heavy use of graphics and animation
Evian Web site
Presents information in a visually stunning way
E- Business, Ninth Edition

10. Web Catalog Revenue Models (cont’d.)
Clothing retailers
Many adapted catalog sales model to Web
Display clothing photos categorized by type
Prices, sizes, colors, tailoring details
Want customers to examine clothing online
Place orders through Web site
Lands’ End online Web shopping assistance
Lands’ End Live (1999)
Online text chat and call-back feature
Ability to push Web pages to customer’s browser
E- Business, Ninth Edition

11. Web Catalog Revenue Models (cont’d.)
Clothing retailers (cont’d.)
Lands’ End personal shopper agent (more recent)
Learns preferences and makes suggestions
My Virtual Model (customers try clothes)
Graphic image built from customer measurements
Another feature allows:
Two shoppers using different computers to simultaneously browse Web site together
Only one of the shoppers can purchase items
Either shopper can select items to view
Selected items appear in both Web browsers
E- Business, Ninth Edition

12. Web Catalog Revenue Models (cont’d.)
Clothing retailers (cont’d.)
Online overstocks stores
Reach more people than physical outlet stores
Problem: varying computer monitor color settings
Solution: send fabric swatch on request
Solution: offer generous return policies
E- Business, Ninth Edition 12

13. Web Catalog Revenue Models (cont’d.)
Flowers and gifts (gift retailers)
1-800-Flowers
Online extension to successful telephone business
Competes with online-only florists
Godiva offers business gift plans
Hickory Farms and Mrs. Fields Cookies
Offer familiar name brands on the Web
Harry and David
Original Web site for informational purposes
Promoted catalog business and added online ordering feature
E- Business, Ninth Edition

14. Web Catalog Revenue Models (cont’d.)
General discounters
Buy.com and Overstock.com
Borrowed Wal-Mart and discount club sales model
Sell merchandise at extremely low prices
Traditional discount retailers (Costco, Kmart, Target, Wal-Mart)
Slow to implement online sales on their Web sites
Had huge investments in physical stores
Did not understand online retailing world
Now use the Web catalog revenue model in their successful online sales operations
E- Business, Ninth Edition

15. Digital Content Subscription Revenue Models
Firms owning written information or information rights
Embrace the Web as a highly efficient distribution mechanism
Use the digital content revenue model
Sell subscriptions for access to information they own
Legal content
LexisNexis: offers variety of information services
Lexis.com: offers original legal information product
E- Business, Ninth Edition

16. Digital Content Subscription Revenue Models (cont’d.)
Academic research content
ProQuest: digital copies of academic publications
Business content
Dow Jones newspaper publisher subscriptions
Sold digitized newspaper, magazine, and journal content subscriptions
Factiva: online content management and integration service
Technical content
Association for Computer Machinery (ACM): digital library
E- Business, Ninth Edition 16

17. Advertising-Supported Revenue Models
Used by United States broadcast network television
Provides free programming and advertising messages
Supports network operations sufficiently
Problem: measuring and charging site visitor views
Stickiness
Keeping visitors at site and attracting repeat visitors
Exposed to more advertising in a sticky site
Problem: obtaining large advertiser interest
Requires demographic information collection
Characteristics set used to group visitors
E- Business, Ninth Edition

18. Advertising-Supported Revenue Models (cont’d.)
Can obtain large advertiser interest by:
Using a specialized information Web site
Draw a specialized audience certain advertisers want to reach
Examples:
The Huffington Post and the Drudge Report
HowStuffWorks
E- Business, Ninth Edition

19. FIGURE 4-2 Three strategies for an advertising-supported revenue model
E- Business, Ninth Edition 19

20. Advertising-Supported Revenue Models (cont’d.)
Web portals (portal)
Site used as a launching point to enter the Web
Almost always includes a Web directory or search engine
Often includes other features
Web directories
Listing of hyperlinks to Web pages
Yahoo!: one of the first
Presents search term triggered advertising on each page
E- Business, Ninth Edition 20

21. Advertising-Supported Revenue Models (cont’d.)
Web portals (cont’d.)
Portal sites using general interest strategy
AOL, Excite, Google, Bing
Portal sites not using general interest strategy
Help visitors find information within a specific knowledge domain
Advertisers pay more
Example: C-NET
Travel sites
Successful as advertising-supported online businesses
Example: Kayak
E- Business, Ninth Edition 21

22. Advertising-Supported Revenue Models (cont’d.)
Newspaper and magazine publishers
Sell advertising to cover Web site costs
Internet Public Library Online Newspapers page
Provides links to worldwide newspaper sites
Local shopping news, alternative press newspapers
Easier transition to advertising-supported Web revenue model
Newspaper’s Web presence
Provides greater exposure and advertising audience
Diverts sales from the print edition (difficult to measure)
Operating costs not covered by advertising revenue
E- Business, Ninth Edition

23. Advertising-Supported Revenue Models (cont’d.)
Targeted classified advertising sites
Can command higher rates than general advertising
Original version
Newspaper classified advertising
Growth of classified advertising Web sites
Very bad for newspapers
Example: craigslist
Web employment advertising
Most successful targeted classified advertising category
Examples: CareerBuilder.com, The Ladders and Guru.com, Monster.com
E- Business, Ninth Edition

24. Advertising-Supported Revenue Models (cont’d.)
Targeted classified advertising sites (cont’d.)
Used vehicle sites
AutoTrader.com, CycleTrader.com, BoatTrader.com
Accept paid advertising to sell cars, motorcycles, boats
Product sites with dedicated following (VetteFinders)
Successful by catering to small audiences
Potential classified advertising sites
Any site selling products useful to buyer after initial use
Musicians Buy-Line, ComicLink.com, The Golf Classifieds
E- Business, Ninth Edition

25. Advertising-Subscription Mixed Revenue Models
Subscribers pay fee and accept advertising
Typically less advertising compared to advertising-supported sites
Web sites offer different degrees of success
The New York Times (today)
Bulk of revenue derived from advertising
The Wall Street Journal (mixed model)
Subscription revenue weighted more heavily
E- Business, Ninth Edition

26. FIGURE 4-3 Revenue models used by online editions of newspapers and magazines
E- Business, Ninth Edition 26

27. Advertising-Subscription Mixed Revenue Models (cont’d.)
ESPN
Leverages brand name from cable television business
Sells advertising, offers free information
Mixed model includes advertising and subscription revenue (collects Insider subscriber revenue)
Consumers Union (ConsumerReports.org)
Purely a subscription-supported site
Not-for-profit organization with no advertising
Free information
Attracts subscribers and fulfills mission
E- Business, Ninth Edition

28. Fee-for-Transaction Revenue Models
Service fee charged
Based on transaction number or size
Web site offers visitor transaction information
Personal service formerly provided by a human agent
Value chain
Disintermediation
Intermediary (human agent) removed
Reintermediation
New intermediary (fee-for-transaction Web site) introduced
E- Business, Ninth Edition

29. Fee-for-Transaction Revenue Models (cont’d.)
Travel
Travel agency revenue model: receive fee for facilitating a transaction
Travel agent adds information consolidation and filtering value
Computers also good at information consolidation and filtering
Travel agents have long used networked computers: Sabre Travel Network
Internet provided a new way to do business online
E- Business, Ninth Edition

30. Fee-for-Transaction Revenue Models (cont’d.)
Travel (cont’d.)
Web-based travel agencies were new entrants
Examples: Travelocity, Expedia, Hotels.com, Hotel Discount Reservations, Orbitz
Generate advertising revenue from ads placed on travel information pages
Traditional travel agents: squeezed out
Surviving agencies charge a flat fee
Smaller travel agents specialize (cruises, hotels)
May use a reintermediation strategy (WaveHunters.com)
E- Business, Ninth Edition 30

31. FIGURE 4-4 Orbitz home page
E- Business, Ninth Edition

32. Fee-for-Transaction Revenue Models (cont’d.)
Automobile sales
Web sites implement the fee-for-transaction revenue model differently
CarsDirect.com model
Customers select specific car, site determines price and finds local dealer
Autoweb.com and Autobytel model
Locate local dealers, car sells at small premium over dealer’s nominal cost
Car salesperson: disintermediated
Web site: new intermediary (reintermediation)
E- Business, Ninth Edition

33. Fee-for-Transaction Revenue Models (cont’d.)
Stockbrokers
Original full-line brokers charged relatively high commissions
Provided advice
1970s: deregulation resulted in discount brokers
Web-based brokerage firms: E*TRADE and Datek
Web allowed investment advice, fast trade execution online
E- Business, Ninth Edition

34. Fee-for-Transaction Revenue Models (cont’d.)
Stockbrokers (cont’d.)
1990s: discount brokers faced competition from online firms
Discount brokers and full-line brokers opened new stock trading and information Web sites
Online brokers offer transaction cost reductions
Traditional stockbrokers: disintermediated
E- Business, Ninth Edition 34

35. Fee-for-Transaction Revenue Models (cont’d.)
Insurance brokers
Quotesmith offered Internet policy price quotes directly to public (1996)
Independent insurance agents: disintermediated
Insurance policy information, comparisons, sales sites
InsWeb, Answer Financial, Insurance.com
Progressive Web site
Provides quotes for competitors’ products too
The General (General Automobile Insurance Services) Web site
Offers comfortable, anonymous experience
E- Business, Ninth Edition

36. Fee-for-Transaction Revenue Models (cont’d.)
Event tickets
Web allows event promoters to sell tickets from one virtual location to customers worldwide
Online agencies earn a fee on every ticket sold
Ticketmaster, Tickets.com, TicketWeb
Web created secondary ticket market (StubHub, TicketsNow)
Brokers connecting ticket owners with buyers
Earn fees on tickets resold for others, buy ticket blocks
Web created easy-to-find central marketplace, facilitating buyer-seller negotiations
E- Business, Ninth Edition

37. Fee-for-Transaction Revenue Models (cont’d.)
Real estate and mortgage loans
Web sites provide all traditional broker services
Coldwell Banker, Prudential
National Association of Realtors Web site
Realtor.com
2008 financial crisis
Dramatically reduced number of mortgage brokers in business
Successful online mortgage brokers
Ditech and E-LOAN
E- Business, Ninth Edition

38. Fee-for-Transaction Revenue Models (cont’d.)
Online banking and financial services
No physical product
Easy to offer on Web
Web financial transactions concerns
Trust and reliability of financial institution
Solutions
Use existing bank’s identification and reputation
Start online bank not affiliated with existing bank (First Internet Bank of Indiana)
Use different name (Bank One used Wingspan)
Approach was not successful
E- Business, Ninth Edition

39. Fee-for-Transaction Revenue Models (cont’d.)
Online banking and financial services (cont’d.)
Additional barriers preventing a more rapid rate of growth
Lack of bill presentment features
Lack of account aggregation tools
By 2012:
Industry analysts expect most banks (online and traditional) will offer aggregation services
E- Business, Ninth Edition 39

40. Fee-for-Transaction Revenue Models (cont’d.)
Online music
Recording industry: slow to embrace online distribution
Feared digital copying
Large online music stores
Revenue from fee-for-transaction model
Some sites offer subscription plans
Complicating issues
Stores offer limited number of digital music files
Stores promote their own music file format
Artists and recording companies invoke limits
E- Business, Ninth Edition

41. Fee-for-Transaction Revenue Models (cont’d.)
Online music (cont’d.)
Complicating issues (cont’d.)
Buyers required to download and install Digital Rights Management (DRM) software
Varying restrictions confusing to consumers
Online music market industry failed to embrace the network effect gained by adopting one standard file format
E- Business, Ninth Edition 41

42. Fee-for-Transaction Revenue Models (cont’d.)
Online music (cont’d.)
Some stores sold audio in a generally compatible file format with no copying restrictions
Mondomix MP3 and Smithsonian Folkways
Music not produced by major recording companies
Solutions
Adopt one standard file format, no copying restrictions, DRM-free MP3 format (Amazon in 2007)
By 2012: 80 percent of all music will be sold online
E- Business, Ninth Edition 42

43. Fee-for-Transaction Revenue Models (cont’d.)
Online video
Issues hampering prior sales
Large file size
Fear of online sales impairing other sales types
Inability to play on variety of devices
Overcoming the issues
New technologies improving delivery
Companies incorporating online distribution into revenue strategy
Delivery allowed on multiple devices
Through standard Web browser
E- Business, Ninth Edition

44. Fee-for-Transaction Revenue Models (cont’d.)
Electronic books
Forms of digital audio books
CDs (originally) and various types of digital files
Audible sells subscriptions
Allows monthly download of a certain number of books
Pricing is per book
Amazon.com
Offers books, newspapers, magazines, other digital format items
Delivered directly to its line of Kindle readers
E- Business, Ninth Edition 44

45. Fee-for-Service Revenue Models
Companies offer Web service
Fee based on service value
Not a broker service
Not based on transactions-processed number or size
Online games
Sales revenue source
Advertising (older concept), pay-to-play for premium games, subscription fees
Average game player is 35 years old, playing computer or video games for 12 years
E- Business, Ninth Edition

46. Fee-for-Service Revenue Models (cont’d.)
Professional services
Limited Web use
State laws prohibit extension of practice
Patients may set appointments, receive online consultation
Major concern
Patient privacy
Law on the Web site
Legal consultations to United Kingdom residents
Martindale.com
Online version of Martindale-Hubbell lawyer directory
E- Business, Ninth Edition

47. Fee-for-Service Revenue Models (cont’d.)
Professional services (cont’d.)
CPA Directory
United States accounting professionals site
General health information
RealAge, Dr. Andrew Weil’s Self Healing, WebMD
Significant barrier
Patient diagnosis difficult without physical examination
Some physicians beginning to offer online consultations
For ongoing, established relationship patients
E- Business, Ninth Edition

48. Free for Many, Fee for a Few
Economics of manufacturing
Different for physical and digital products
Unit cost high percentage of physical products
Unit cost very small for digital products
Leads to a different revenue model
Offer basic product to many for free
Charge a fee to some for differentiated products
Examples: Yahoo accounts, bakery: free cookies
E- Business, Ninth Edition

49. Revenue Models in Transition
Companies must change revenue model
To meet needs of new and changing Web users
Some companies created e-commerce Web sites
Needed many years to grow large enough to become profitable (CNN and ESPN)
Some companies changed model or went out of business
Due to lengthy unprofitable growth phases
E- Business, Ninth Edition

50. Subscription to Advertising-Supported Model
Slate magazine
Upscale news and current events
Success expectations were high
Experienced writers and editors
Acclaim for incisive reporting and excellent writing
Initial revenue source
Annual subscription did not cover operating costs
Now an advertising-supported site
Part of the Bing portal
Value to Microsoft: increase the portal’s stickiness
E- Business, Ninth Edition

51. Advertising-Supported to Advertising-Subscription Mixed Model
Salon.com
Acclaimed for innovative content
Initial revenue source
Advertising-supported site
Needed additional money to continue operations
Now offers optional subscription version
Annual fee for Salon premium
Free of advertising
Additional content
Downloadable content
E- Business, Ninth Edition

52. Advertising-Supported to Fee-for-Services Model
Xdrive Technologies: offered free disk storage
Initial revenue source (1999): advertising-supported
Targeted advertising
Did not cover operating costs
2005: bought by AOL
Switched to a subscription-supported model
Xdrive frequently adjusted its monthly fee downward
AOL closed the service in 2009
Successful companies: fee based on storage amount used
E- Business, Ninth Edition

53. Advertising-Supported to Subscription Model
Northern Light search engine includes own database
Results include Web site links and abstracts of its owned content
Initial revenue source
Combination of the advertising-supported model plus a fee-based information access service
Advertising revenue: insufficient to cover service
Converted to a new subscription-supported revenue model
Mainly large corporate clients
Individual monthly billing option for articles accessed
E- Business, Ninth Edition

54. Multiple Transitions Encyclopedia Britannica
Initial Web offerings (1994)
Britannica Internet Guide
Encyclopedia Britannica Online
Initial revenue source
Paid subscription site had low subscription sales
Converted to free advertiser-supported site (1999)
Advertising revenues declined
2001: returned to mixed model with subscription plan and free content
Value added: sells reputation and the expertise
E- Business, Ninth Edition

55. Revenue Strategy Issues
Topics:
Web revenue models implementation issues
Dealing with the issues
E- Business, Ninth Edition

56. Channel Conflict and Cannibalization
Channel conflict (cannibalization)
Company Web site sales activities interfere with existing sales outlets
Levis Web site and Maytag
Web sites no longer sell products
Sites now provide product, retail distributor information
Eddie Bauer
Online purchases returnable at retail stores
Required compensation and bonus plans adjustments to support Web site
Channel Cooperation made it successful
E- Business, Ninth Edition

57. Strategic Alliances Strategic alliance
Two or more companies join forces
Undertake activity over long time period
Yodlee account aggregation services provider
Yodlee concentrates on developing the technology and services
Banks provide the customers
Amazon.com
Joined with Target, CDnow, ToysRUs
ToysRUs and Amazon suing each other
E- Business, Ninth Edition

58. Creating an Effective Web Presence
Organization’s presence
Public image conveyed to stakeholders
Usually not important
Until growth reaches significant size
Stakeholders
Customers, suppliers, employees, stockholders, neighbors, general public
Effective Web presence
Critical even for smallest and newest Web operating firms
E- Business, Ninth Edition

59. Identifying Web Presence Goals
Business physical space
Focus: very specific objectives
Not image driven
Must satisfy many business needs
Often fails to convey a good presence
Web business site
Intentionally creates distinctive presences
Good Web site design provides:
Effective image-creation features
Effective image-enhancing features
E- Business, Ninth Edition

60. Identifying Web Presence Goals (cont’d.)
Web business site objectives:
Attracting Web site visitors
Keeping visitors to stay and explore
Convincing visitors to follow site’s links to obtain information
Creating an impression consistent with the organization’s desired image
Building a trusting relationship with visitors
Reinforcing positive images about the organization
Encouraging visitors to return to the site
E- Business, Ninth Edition

61. Identifying Web Presence Goals (cont’d.)
Making Web presence consistent with brand image
Different firms establish different Web presence goals
Coca Cola Web site pages
Usually include trusted corporate image (Coke bottle)
Image: traditional position as a trusted classic
Pepsi Web site pages
Usually filled with hyperlinks to activities and product-related promotions
Image: upstart product favored by younger generation
E- Business, Ninth Edition 61

62. Identifying Web Presence Goals (cont’d.)
Matching site design to function
Volkswagen of America site
Accomplishes important functions for the company
Provides links to detailed Volkswagen model information, links to a dealer locator page, links to information about the company, a link to a set of shopping tools
Volkswagen’s home page
Meets the needs of most visitors quickly and effectively
Volkswagen site enhances company image by providing useful information to customers online
E- Business, Ninth Edition 62

63. FIGURE 4-5 Volkswagen of America home page
E- Business, Ninth Edition

64. Identifying Web Presence Goals (cont’d.)
Not-for-profit organizations
Web presence effort key goals:
Image enhancement and information dissemination
Successful site key elements
Integrate information dissemination with fund-raising
Provide two-way contact channel
American Civil Liberties Union (ACLU)
Serves many different constituencies
Web sites used to stay in touch with existing stakeholders, identify new opportunities for serving them
E- Business, Ninth Edition

65. FIGURE 4-6 ACLU home page
E- Business, Ninth Edition

66. Web Site Usability Current Web presences
Few businesses accomplish all goals
Most fail to provide visitors sufficient interactive contact opportunities
Improving Web presence
Make site accessible to more people
Make site easier to use
Make site encourage visitors’ trust
Make site develop feelings of loyalty toward the organization
E- Business, Ninth Edition

67. How the Web Is Different
Simple mid-1990s Web sites
Conveyed basic business information
No market research conducted
Web objectives achievement
Failed due to no understanding for Web presence-building media
Web sites designed to create an organization’s presence:
Contain links to standard information set
Success dependent on how this information offered
E- Business, Ninth Edition

68. Meeting the Needs of Web Site Visitors
Successful Web businesses:
Realize every visitor is a potential customer (partner)
Web presence is an important concern
Know visitor characteristic variations
Understand that the visitor is at the site for a reason
Varied motivations of Web site visitors
Why visitors arrive at Web sites
Learning about company products or services
Buying products or services
Obtaining warranty, service, repair policy information
E- Business, Ninth Edition

69. Meeting the Needs of Web Site Visitors (cont’d.)
Varied motivations of Web site visitors (cont’d.)
Why visitors arrive at Web sites (cont’d.)
Obtaining general company information
Obtaining financial information
Identifying people
Obtaining contact information
Following a link into the site while searching for information about a related product, service, or topic
Challenge to meet all motivations
Visitors arrive with different needs, experience, and expectation levels
E- Business, Ninth Edition

70. Meeting the Needs of Web Site Visitors (cont’d.)
Making Web sites accessible
Build interface flexibility options:
Frame use
Text-only version
Selection of smaller graphic images
Specification of streaming media connection type
Choice among information attributes
Controversial Web site design issues
Adobe Flash software use
Some tasks lend themselves to animated Web pages
E- Business, Ninth Edition

71. FIGURE 4-7 Lee® Jeans FitFinder Flash animation
E- Business, Ninth Edition

72. Meeting the Needs of Web Site Visitors (cont’d.)
Making Web sites accessible (cont’d.)
Offer multiple information formats
Consider goals in Web site construction
FIGURE 4-8 Goals for business Web sites
E- Business, Ninth Edition

73. Trust and Loyalty Creates relationship value
Good service leads to seller trust
Delivery, order handling, help selecting product, after-sale support
Satisfactory service builds customer loyalty
Customer service in electronic commerce sites
Problem
Lack integration between call centers and Web sites
Poor responsiveness
E- Business, Ninth Edition

74. Rating Electronic Commerce Web Sites
Companies routinely review electronic commerce Web sites for:
Usability, customer service, other factors
Sell the gathered information directly to the companies operating the Web sites
Include suggestions for improvements
BizRate.com posts ratings
Provides comparison shopping service
Compiles ratings by conducting surveys of sites’ customers
E- Business, Ninth Edition

75. Usability Testing Importance Helps meet Web site goals
Avoids Web site frustration
Customers leave site without buying anything
Simple site usability changes
Include telephone contact information
Staff a call center
Learn about visitor needs by conducting focus groups
Usability testing cost
Low compared to Web site design costs
E- Business, Ninth Edition

76. Customer-Centric Web Site Design
Important part of successful electronic business operation
Focus on meeting all site visitors’ needs
Customer-centric approach
Putting customer at center of all site designs
Follow guidelines and recommendations
Make visitors’ Web experiences more efficient, effective, memorable
Webby Awards site
Examples of good Web site design
E- Business, Ninth Edition

77. Connecting with Customers
Important element of a corporate Web presence
Identify and reach out to customers
E- Business, Ninth Edition

78. The Nature of Communication on the Web
Communication modes
Personal contact (prospecting) model
Employees individually search for, qualify, contact potential customers
Mass media
Deliver messages by broadcasting
Addressable media
Advertising efforts directed to known addressee
Internet medium
Occupies central space in medium choice continuum
E- Business, Ninth Edition

79. FIGURE 4-9 Business communication modes
E- Business, Ninth Edition

80. Summary Six main Web revenue models
Models work differently
Different business types use different models
Companies change models as they learn more about:
Customers, business environment
Channel conflict and cannibalization challenges
One approach: channel cooperation
Effective Web presence delivers customer value
Web site visitors arrive with a variety of expectations, prior knowledge, skill levels, technology
Web communication fits in between personal contact and mass media
E- Business, Ninth Edition