Download Web site design criteria

Chapter 16
Launching a Successful
Online Business
Learning Objectives
1. Understand the fundamental
requirements for initiating an online
business.
2. Describe the funding options
available to startup businesses.
3. Evaluate the options for hosting Web
sites.
2
Learning Objectives (cont.)
4. Understand the processes and business
decisions associated with managing Web
site development.
5. Understand the importance of providing
content that meets the needs and
expectations of the intended audience.
3
Learning Objectives (cont.)
6. Evaluate Web sites on design criteria
such as appearance, navigation,
consistency, and performance.
7. Know the techniques of search engine
optimization to obtain high placement in
search engines.
4
Learning Objectives (cont.)
8. Understand the benefits of customer
relationship management through
customer self-service, listening to
customers, and increasing trust.
5
OBO Sets
Its Goals for Success
• The Problem
– OBO sells protective gear for field hockey
goalkeepers
– OBO’s unique three-dimensional thermobonding manufacturing process produces
equipment that is shaped to reflect the way
the body moves
6
OBO Sets
Its Goals for Success (cont.)
– By manufacturing a quality product and
listening to the customer, OBO has
become the market leader
– OBO is based in a small provincial town in
New Zealand that is a very long way from
its principal markets
7
OBO Sets
Its Goals for Success (cont.)
– OBO sells a niche product that is best sold
thorough agents or stores to ensure a
proper fit
– How does OBO use its Web site to market
an experiential product to a global market
from New Zealand?
8
OBO Sets
Its Goals for Success (cont.)
• The Solution
– The goals of the obo.co.nz Web site are:
• community building
• product sales
• research and development
9
OBO Sets
Its Goals for Success (cont.)
– Community building happens through:
• online discussion forums
• sponsored players
• an image gallery
– The principal marketing and sales goal
of the Web site is to:
• convince the visitor of the value of the product
• direct the customer to a store or agent to
make the purchase
10
OBO Sets
Its Goals for Success (cont.)
– The Web site is a support mechanism for
the brand and the sale of equipment
through the agents
– Research and development goal is met
through:
• online surveys
• solicitation of players’ opinions of the products
• focus groups
11
OBO Sets
Its Goals for Success (cont.)
• The Results
– The OBO Web site is most successful at
community building
– The site also builds community by promoting a
goalie-friendly approach to OBO’s customers
– Online product sales are modest because the Web
site supports, not competes, with OBO’s agent
network
12
OBO Sets
Its Goals for Success (cont.)
– Online sales are expected to grow because
OBO has introduced a new line of clothes
designed to be sold exclusively through
the Web site
– The focus groups deliver high-value
feedback at almost no cost
– The discussion forums contribute to both
community building and feedback about
OBO’s product
13
OBO Sets
Its Goals for Success (cont.)
• What we can learn…
– A small company with a great product is
using its Web site to reach its target
markets in distant countries
– OBO is using the site to support business
goals, as well as to meet the needs and
expectations of its target audience
14
OBO Sets
Its Goals for Success (cont.)
– The Web site is simple and well designed,
includes:
• “attractors” that encourage customer interaction
and keep customers coming back
• content that promotes cross selling
• effectively promotes sustainable customer
relationships
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Doing Business Online:
Getting Started
• Business formation process:
– Identify a consumer or business need in
the marketplace
– Investigate the opportunity
– Determine the business owner’s ability to
meet the need
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Doing Business Online:
Getting Started (cont.)
• Requirements that reflect the online nature
of a business:
– Need to understand Internet culture
Customers are active in how they absorb and use
information, and the Internet is a personal, helping,
and sharing place for most users
– Consider the nature of appropriate
products and services
17
Doing Business Online:
Getting Started (cont.)
• E-business planning
Business plan: A written document that
identifies a company’s goals and outlines
how the company intends to achieve the
goals
18
Doing Business Online:
Getting Started (cont.)
– Biggest difference in e-business
planning is for the ontrepreneur to
recognize that the Internet is unlike
any other sales channel; companies
can:
• interact with consumers with both reach and
richness
• introduce new and innovative business
models
• distribute information at the speed of light at
almost zero cost
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Doing Business Online:
Getting Started (cont.)
– An existing brick-and-mortar business
looking to move online also needs a:
Business case: A document that is used to
justify the investment of internal,
organizational resources in a specific
application or project
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Doing Business Online:
Getting Started (cont.)
• Business case template includes:
– Goals
– Cost savings
– New revenue
– Extra benefits
– Cost of the solution
– Net benefits
– Recommendation
21
Doing Business Online:
Getting Started (cont.)
• Funding the online business
– Venture capital (VC): Money invested
in a business by an individual or a
group of individuals (venture
capitalists) in exchange for equity in
the business
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Doing Business Online:
Getting Started (cont.)
– Angel investor: A
wealthy individual
who contributes
personal funds
and expertise at
the earliest stage
of business
development
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Doing Business Online:
Getting Started (cont.)
– Incubator: A company, university, or notfor-profit organization that supports
businesses in their initial stages of
development
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Doing Business Online:
Building the Web Site
• Classifications of Web sites
– Informational Web site: A Web site that
does little more than provide information
about the business and its products and
services
– Interactive Web site: A Web site that
provides opportunities for the customers
and the business to communicate and
share information
25
Doing Business Online:
Building the Web Site (cont.)
– Attractors: Web site features that attract
and interact with visitors in the target
stakeholder group
– Transactional Web site: A Web site that
sells products and services
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Doing Business Online:
Building the Web Site (cont.)
•
Building the Web site
1.
2.
3.
4.
5.
6.
Select a Web host
Register a domain name
Create and manage content
Design the Web site
Construct the Web site and test
Market and promote the Web site
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Web Site Hosting
• Web hosting options:
– Storebuilder service: A hosting service
that provides disk space and services
to help small and micro businesses
build a Web site quickly and cheaply
– ISP hosting service: A hosting service
that provides an independent,
standalone Web site for small- and
medium-sized businesses
28
Web Site Hosting (cont.)
– Web hosting service: A dedicated Web site
hosting company that offers a wide range
of hosting services and functionality to
businesses of all sizes
– Mirror site: An exact duplicate of the
original Web site, but it is physically
located on a Web server on another
continent
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Web Site Hosting (cont.)
– Co-location: A Web server owned and
maintained by the business is placed in
a Web hosting service that manages the
server’s connection to the Internet
– Self-hosting: When a business acquires
the hardware, software, staff, and
dedicated telecommunications services
necessary to set up and manage its own
Web site
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Web Site Hosting (cont.)
• Contracting the Web host
– The search for an ISP host:
• contacting local ISPs for information
• asking others in the business community for
recommendations
• consulting with local telecommunications and
computer user groups
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Web Site Hosting (cont.)
– When a short list of potential ISPs has
been compiled, a RFQ can be used to
ensure that complete and consistent bids
for provision of service are submitted
32
Web Site Hosting (cont.)
• Consider:
– service quality
measures
– guaranteed uptime
– number of clients
– current traffic rates
–
–
–
–
software support
security
site traffic analysis
technical support
services
– costs
33
Web Site Hosting (cont.)
• Registering a domain name
– Domain name: A name-based address that
identifies an Internet-connected server
– Domain name registrar: A business that
assists prospective Web site owners with
finding and registering a domain name of
their choice
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Web Site Hosting (cont.)
• Selecting a good domain name:
– Make it memorable
– Make it easy to spell
– Avoid numbers and special characters
– Keep it short and sensible
35
Web Site Hosting (cont.)
– Be flexible
– Think about the future
– Give products their own name
– Investigate the competition
– Avoid trademarked names
36
Content Creation
and Management
• Content: The text, images, sound, and
video that make up a Web page
• Commodity content: Information that is
widely available and generally free to
access on the Web
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Content Creation
and Management (cont.)
• Premium content: Content not available
elsewhere on the Web
• Cross selling: Offering similar or related
products and services to increase sales
• Up selling: Offering an upgraded version
of the product in order to boost sales and
profit
38
Content Creation
and Management (cont.)
• Up-selling activities usually include
offering products with a different
design, color, fabric, or size
– Promotion
secondary content that can increase sales or
improve customer service
– Comment
further explanation about the product can be
offered after introducing the product
39
Content Creation
and Management (cont.)
– Creating content
• collecting all the content that is currently available
• value of additional content is assessed for
inclusion in the Web site
• consider how each bit of content will serve the
site’s goals and whether customers will want it or
expect it
• created by customers through reviews etc.
40
Content Creation
and Management (cont.)
– Buying content
• Content can be purchased or licensed
• Content that is acquired from outside sources
should be supplemental content, not primary
content
• If primary content is purchased and no value is
added, visitors will go to the originating site and not
return
41
Content Creation
and Management (cont.)
– Personalizing content
Personalized content: Web content that is
prepared to match the needs and expectations of
the individual visitor
– Delivering content by e-newsletter
E-newsletter: A collection of short, informative
articles sent at regular intervals by e-mail to
individuals who have an interest in the newsletter’s
topic
42
Content Creation
and Management (cont.)
– Writing effective content
• Write scannable text
• Break long sections into smaller ones with clearly
noted headings
• Grab the reader’s attention at the beginning of
every page and section
• Write in a tone and with language that reflects the
purpose of the material
43
Content Creation
and Management (cont.)
• Consistency in site content can be achieved using
a style guide
• Make the material available in a .pdf file when
necessary
• Create compelling links that encourage a reader to
click
• External links can offer good content for visitors
• Avoid material that is not highly valued by
customers
44
Content Creation
and Management (cont.)
• Content management
Content management: The process of
adding, revising, and removing content
from a Web site to keep content fresh,
accurate, compelling, and credible
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Content Creation
and Management (cont.)
– Content testing—frequent checks of
material for:
• Accuracy
• Clarity
• Typos
– poor punctuation
– misspelled words
– inconsistencies
46
Content Creation
and Management (cont.)
– Content removal
Expired pages should be deleted or moved to an
off-line location that can serve as an archive
– Content management software
Allows nontechnical staff to create, edit, and delete
content on the company’s Web site
47
Content Creation
and Management (cont.)
– Purchasing a content management
software
1. Do a thorough needs analysis
2. Document requirements and discuss with at
least two companies that have purchased a
CMS
3. Start small with CMS that has a trial version or
low entry cost
4. Assess the system after 30 days
5. Repeat the assessment process regularly
48
Web Site Design
• The goal of any Web site is to deliver
quality content to its intended audience
and to do so with an elegant design
49
Web Site Design (cont.)
• Information architecture
Information architecture: How the site and
its Web pages are organized, labeled, and
navigated to support browsing and
searching throughout the Web site
50
Web Site Design (cont.)
• Web site design
criteria:
– Navigation
– Consistency
– Performance
–
–
–
–
–
Appearance
Quality assurance
Interactivity
Security
Scalability
51
Web Site Design (cont.)
– Site structure is:
• hierarchical
• circular
• linear
– Getting the homepage right is critical
– All pages within the site should link back
to the homepage
52
Web Site Design (cont.)
– Deep linking: Entry into a Web site via the
site’s interior pages, not the homepage,
typically through search engines or
external links
53
Web Site Design (cont.)
54
Web Site Design (cont.)
55
Web Site Design (cont.)
• Organizing and labeling the site support
browsing and searching:
– Obey the three-click rule
– Place the most important content at the
top of the page
– Keep pages short
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Web Site Design (cont.)
– Keep page layouts simple
– Follow commonsense publishing rules
– Make the primary content easy to find
– Show the products in many ways
57
Web Site Design (cont.)
• Site navigation
Site navigation: Aids that help visitors
find the information they need quickly
and easily
– The simplest navigation aid is a
navigation bar at the top and bottom of
each page
– Frame: An HTML element that divides
the browser window into two or more
separate windows
58
Web Site Design (cont.)
59
Web Site Design (cont.)
• Other suggestions for designing
successful Web site navigation:
– Use small lists and menus
– Do not rely entirely on graphical
images for navigation
– Make the homepage easy to find
– Integrate navigation into content
– Avoid frames
– Follow accessibility guidelines
60
Web Site Design (cont.)
61
Web Site Design (cont.)
• Consistency
– Look and feel: The elements that visually
distinguish a site from any other, including
layout, typeface, colors, graphics, and
navigation aids
62
Web Site Design (cont.)
– Elements of page content also should be
consistent:
• company logo
• contact information
• short, descriptive title
– Design a Web site for all of these
browsers, but to use designated World
Wide Web Consortium standards
63
Web Site Design (cont.)
• Performance
– Speed ranks at or near the top of every list
of essential design considerations
– The most widely recognized cause of long
download times is a large graphic or a
large number of small graphics on a single
page
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Web Site Design (cont.)
– 12-second rule:
Every page on the
Web site should
appear within 12
seconds
– 4-second rule:
something should
appear in the
visitor’s browser in 4
seconds or less
65
Web Site Design (cont.)
• Colors and graphics rules:
– Match the expectations of the target
audience
– Use standard colors
– Follow color standards
– Use complementary colors
– Specify the background color
66
Web Site Design (cont.)
– Use bandwidth-intensive features
selectively
– Design for visually or hearing-impaired
visitors
– Use the ALT tag
– Avoid distracting features
67
Web Site Design (cont.)
• Quality assurance
– make sure the Web site design is properly
tested before it is launched
– ensure that it continues to perform up to
expectations after launch
68
Web Site Design (cont.)
– design the site for easy maintenance
– responsible owners frequently test all
features of the site personally
– quality Web sites are tested regularly
– Web site performance is also an ongoing
concern
69
Web Site Construction
• Who builds the Web site?
– Internal staff, an outside contractor, or a
combination of these two
– Internal Web site development: The
process of building and/or maintaining the
Web site with company staff
70
Web Site Construction (cont.)
• Companies build their own site
because:
– Use of existing in-house expertise
– Desire to build in-house expertise
– Protection of proprietary technologies
– Tighter control and responsiveness
71
Web Site Construction (cont.)
• External Web site development: When the
business hires another firm to build and/or
maintain the Web site
– Speed to market
– Not a core competency
– Access to special expertise
72
Web Site Construction (cont.)
• Partnering Web site development: When a
mixture of internal and external
development is used to build and/or
maintain a Web site
The principal downside to partnering is the
additional overhead of contract and
relationship management
73
Web Site Construction (cont.)
• Web site construction: The initial content
creation, design, programming, and
installation phases of a Web site’s
development
• Web site maintenance: The on-going process
of keeping the Web site open for business,
managing content, fixing problems, and
making incremental additions to the site
74
Web Site Construction (cont.)
• Managing Web site construction:
– Start with a plan
– Set goals early and stick to them
– Use a fixed-price contract
– Justify graphics and features
75
Web Site Construction (cont.)
• Accepting credit cards
Card-not-present (CNP) transaction: When
there is no signature and no verification of
the credit card signature by the merchant
76
Web Site Construction (cont.)
• To accept credit cards online a company
must:
– Open a merchant account
– Purchase credit card processing software
– Integrate the credit card processing
software into the transaction system
77
Web Site Promotion
• Internal Web site promotion
– Include content that establishes the site as
a useful site for customers to remember so
that they return and make a purchase
– Signature file: A simple text message an email program automatically adds to
outgoing messages
78
Web Site Promotion (cont.)
– Search engine optimization (SEO): The
application of strategies intended to
position a Web site at the top of Web
search engines
– The key to SEO is understanding the
algorithms the search engines use to
determine the ranking of the results
returned to the searcher
79
Web Site Promotion (cont.)
• Strategies for keyword creation and
placement:
– Create keywords the target audience is
most likely to use
– Use specific phrases, not general
keywords
– Optimize the title
80
Web Site Promotion (cont.)
– Use meta tags
• Meta tag: An HTML element that describes the
contents of a Web page
– Use keywords early and often in page
content
– Include keywords in ALT tags
– Avoid spider-hostile features
– Do not spam search engines
81
Web Site Promotion (cont.)
• Strategies for maximizing link popularity:
– Create content that promotes linking
– Seek reciprocal links
– Determine what sites already link to the
target site
82
Web Site Promotion (cont.)
– Visit competitors
– Seek highly placed links
– Seek links from well-known sites
– Do not use free-for-all (FFA) or link farms
83
Customer Relationship
Management
• Customer relationship management
(CRM): A customer service approach that
focuses on building long-term and
sustainable customer relationships that
add value for the customer and the
company
84
Customer Relationship
Management (cont.)
• Using content to create customer
relationships
– Provide membership
– Personalize the user experience
– Support users
– Communicate via the community
– Reward visitors
– Market effectively
– Set up smart affiliate relationships
85
Customer Relationship
Management (cont.)
• Customer self-service with FAQ pages:
FAQ page: A Web site page that lists questions
that are frequently asked by customers and the
answers to those questions
86
Customer Relationship
Management (cont.)
• Characteristics of an effective FAQ page:
– The FAQ page is easy to find
– The FAQ page loads fast
– The questions are easy to find
87
Customer Relationship
Management (cont.)
– The answers are written from a customer’s
perspective
– The answers do not repeat information
offered elsewhere
– Offer an opportunity to ask a question not
on the FAQ
– The FAQ page is never done
88
Customer Relationship
Management (cont.)
• Listening to customers
– Mine e-mail for information
– Survey customers quickly and frequently
– Create an e-mail list
E-mail discussion list: A group of people who share
a common interest and who communicate with
each other via e-mail messages managed by email list software
89
Customer Relationship
Management (cont.)
– Create a discussion forum
Electronic discussion forum: A portion of the Web
site where visitors can post questions, comments,
and answers
– Create a chat group
Chat group: A portion of the Web site where
visitors can communicate synchronously
90
Customer Relationship
Management (cont.)
• Increasing trust
Trust: A psychological state-of-mind when
two or more parties are willing to pursue
further interactions to achieve a planned
goal
91
Customer Relationship
Management (cont.)
• Ways to increase trust:
– Tell the customer about the company
– Include testimonials from loyal,
satisfied customers
– Provide numerous opportunities for
feedback
– Answer customer e-mail promptly
– Provide information to the customer
about an order
92
Managerial Issues
1. What does it take to create a successful
online business?
2. Is creating a Web site a technical task or
a management task?
3. How do we attract visitors to the Web
site?
4. How do we turn visitors into buyers?
93
Summary
1. Fundamental requirements for initiating
an online business.
2. Funding options for a start-up online
business.
3. Web site hosting options for an online
business.
4. Web site construction options for an
online business.
94
Summary (cont.)
5. Provide content that attracts and keeps
Web site visitors.
6. Design a visitor-friendly site.
7. High placement in search engines is key.
8. Customer relationship management can
contribute to success.
95