• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Website Strategy
 

Website Strategy

on

  • 654 views

 

Statistics

Views

Total Views
654
Views on SlideShare
647
Embed Views
7

Actions

Likes
1
Downloads
0
Comments
0

2 Embeds 7

http://www.slideshare.net 6
http://www.linkedin.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Website Strategy Website Strategy Presentation Transcript

    • Website Market Positioning
    • Key Messages
      • Two dimensions drive customer loyalty on the Web: Intensity of relationship with the user, and completeness of the service offering
      • Combined, these dimensions can be used to assess the sustainability of a Web value proposition
      • A site may be positioned differently among different user groups — contributing to overall greater success
      • An evolution is taking place in the race to attract eyeballs; Web players will leapfrog one another as some establish more compelling value propositions that make other positions unstable
      • XXX site faces the question of whether and how to plan the evolution of its market position
    • How do you segment the Web? By Products and Services? By Customer and Markets? By Industry?
      • Bundling of services redefines services into segments
      • Leaves an open question for products
      • With growing Web population, difficult to measure number of target customers online and their preferences
      • Customer preferences change rapidly with new Web offerings
      • Convergence is redefining the “industry” players
    • Two dimensions drive Web segmentation: Intensity of relationship with the user, and completeness of the service offering E-Business principle:
      • Information richness & reach
      • Convenience
      What the Web enables:
      • Unprecedented collection of customer data and pattern analysis
      • Learning about customers in real-time
      • Radical service combinations
      • Dynamic presentation of up-to-the-minute information in searchable, graphics-rich formats
      Sample site feature:
      • Responsive online help
      • On-line order check
      Sample site toolbox:
      • Data analysis engine
      • Configurator
      Sample user tool:
      • Personal data meters
      • On-line wallets
      Motto
      • “ Don’t think ‘mass.’ Think ‘me.’”
      • “ The scarcest resource on earth is time”
      Segmentation driver: Intensity of Customer Relationship Completeness of Service Offering
    • Intensity of relationship with the user is a continuum on the Web, driving different value propositions Casual Familiar Intimate Analogy “ I don’t know much about you at all” “ I know where you live and what you read” “ I can predict what you want for your birthday” Exchange of information
      • Not required or session-specific
      • One-time (with individuals)
      • Ongoing (with segments)
      • Ongoing (with both individuals and segments)
      Depth of information
      • Capturing reactions to offering
      • Building segment profiles
      • Building user lists
      • Building segment profiles
      • Building user histories/profiles
      Use of information
      • Reactive
      • Reactive
      • Proactive
      • Modeling based on large-group data
      Resulting value proposition
      • Undifferentiated
      • User chooses among elements to meet needs
      • Focused offering
      • Crafted to meet stated (uncomplicated) needs
      • Predictive offering
      • Crafted to meet both stated as well as unstated needs
      Example
      • Broadcast.com
      • WSJ.com
      • Future banking services
      • Future travel services
      • Future gift services
      Intensity of Customer Relationship
    • Key differences across the casual, familiar and intimate space lie in strategies around customer information, at both the aggregate and individual levels Casual Familiar Intimate Summary Points
      • No lists
      • No profiles
      • Reactive use of data
      • Undifferentiated offering
      • User lists
      • Segment profiles
      • Reactive use of data
      • Focused offering
      • User profiles
      • Segment profiles
      • Proactive and modeling use of data
      • Predictive offering
      Intensity of Customer Relationship
    • The intensity of user relationship depends on exchanging value for information Intensity of Customer Relationship Exchange, Depth and Use of Customer Information “ The key is building trust — any information you give me is going to be used to generate value for you. If you give me a little bit of information, I’ll give you some helpful advice or recommendations… The next time I ask you for information, you’re willing to give me a little bit more about yourself.” - John Hagel, author of Net Gain and Net Worth Casual Familiar Intimate
    • Completeness of service offering is also a continuum on the Web, driving different value propositions Single Service Multiple Services Comprehensive Analogy
      • Boutique shop
      • Mega-store OR
      • Themed mall
      • Activity-system (1)
      Relevance of services
      • Part of the task user seeks to accomplish
      • Central to the task user seeks to accomplish
      • End-to-end solution
      Types of partners (2)
      • Distribution relationships only
      • Distribution relationships only OR
      • Partnerships that extend the value proposition
      • Partnerships that complete the value proposition
      Coordination among partners
      • Possible to share marketing data and tactics
      • Periodic sharing of information to guide partner effectiveness
      • Frequent sharing of information to guide partner effectiveness
      • Seamless, real-time data handoffs
      Resulting value proposition
      • Priority is delivering one service well
      • Priority is handling many related customer needs
      • Influenced by what customers want to do and how they want to do it
      • Priority is delivering greatest convenience/time savings
      • Controlled by what customers want to do and how they want to do it
      Example
      • MGM.com
      • eloan.com
      • Autobytel.com
      • Future home buying services
      • Future car buying services
      Completeness of Service Offering
    • Key differences across the single, multiple and comprehensive services space space lie in goals for partnering as well as overall objectives Summary Points Single Service Multiple Services Comprehensive
      • Partial relevance
      • Top relevance
      • End-to-end solution
      Completeness of Service Offering
      • Distribution relationships only
      • Two approaches to partnering
        • Do it all alone (distribution partners only)
        • Link with partners to extend value proposition, sharing information periodically
      • Partners complete the value proposition — with real-time data handoffs to sustain this
      • Delivers one service well
      • Handles many related needs
      • Delivers greatest convenience
    • The combination of intensity of relationship and completeness of service offering drive customer loyalty — and hence, the sustainability of a value proposition Web Market Positioning Casual Familiar Intimate Registration/Commerce User Profiles Comprehensive Multiple Services Single Service Completeness of Service Offering Intensity of Relationship Increased Completeness Raises Barriers to Entry Heightened Intensity Raises User Switching Costs Greater sustainability Greater loyalty Greater differentiation
    • An evolution is taking place in the race to attract eyeballs. Web players will leapfrog one another as some establish more compelling value propositions that make other positions unstable Competitive Evolution on the Web: A Game of Leapfrog Casual Familiar Intimate Registration/Commerce User Profiles Comprehensive Multiple Services Single Service Completeness of Service Offering Intensity of Relationship Insurance carrier site (allows purchase) Insurance carrier site (lists agents, fees) Insurance industry site (lists agents, fees) Quick Quote (compare and purchase from different carriers) Integrated personal finance site Future car buying network Future personal health network Future personal finance network Future insurance network (proactive recommendations) Operating at “Web speed,” players may also leapfrog their own position Example: Palm Palm VII Example: MSN proprietary content MSN as separate services MSN as portal ILLUSTRATIVE
    • Current value propositions offer multiple services and/or a familiar relationship. With thousands of Web sites, the trend is rapidly driving to comprehensive offerings and/or intimate relationships Casual Familiar Intimate Registration/Commerce User Profiles Comprehensive Multiple Services Single Service Completeness of Service Offering Intensity of Relationship Insights Unlikely position. Difficult to mirror what customers want to do/how they want to do it without gathering, analyzing segment data (at least) Unlikely position. Difficult to meet both stated as well as unstated needs without providing multiple or better services to attract large numbers of users Unstable position. User loyalty easily eclipsed by sites in the adjacent boxes Future sustainable positions. Few exist today, especially in the intimate space where extensive historical databases are required
      • Customer magnet
      • Mass customization
      • Know what the customer wants before one knows it
      • Know what the customer wants before one knows it
      • Customer magnet
      Current Successes
    • Deliberately evolving a site along these dimensions poses strategic and technological challenges Enhancing Intensity of Relationship Increasing Completeness of Service Offering Challenges
      • Using customer data. Internet companies can be better, smarter and faster — but as of yet, customers have seen only some differences (1) . Today customer data is used primarily to cut costs, not satisfy customers — or drive loyalty
      • Generating trust. With multiple sites clamoring for customer data, and with only a few sites offering incremental value in exchange for incremental information, a large number of users will not share accurate information (2)
      • Creating the network anchor (“breadth”). A Web player may choose to establish itself as the foundation for a comprehensive activity-system. This position demands extensive capabilities in several areas critical to the network as well as deep pockets/market power with which to consummate long-term alliances
      • Deepening a niche (“link”). Alternatively, a Web player may choose to establish itself as the key player required for one or more service networks. This position demands superior competitive performance in the niche and alliances with all networks for which the niche is critical
    • Another key challenge is that a site may be positioned differently among different user groups. When integrated, positioning among one group can feed off of and contribute to success with another Example of Different Positioning among Different User Groups: xxx.com Comprehensive Multiple Services Single Service Listeners Artists Completeness of Service Offering Casual Familiar Intimate Registration/Commerce User Profiles Intensity of Relationship Listeners receive free downloadable music, e-commerce opportunities, related news/reviews Artists receive Web page hosting, promotions, popularity stats and many community features — all free Strong relationships with artists propels buzz among listeners and improves listener relationships — a virtuous cycle
    • Some Web plays have established more positions that are more sustainable than others by delivering completeness of offering and intensity of relationship Comprehensive Multiple Services Single Service Completeness of Service Offering Casual Familiar Intimate Registration/Commerce User Profiles Listeners Intensity of Relationship Note: Like sites may have more than one position corresponding to different user groups. Shown here is the position for each site’s largest user group Consumers 7
    • The User Satisfaction Metrics help XXX measure the bottom-line impact of the XXX site User Satisfaction Metrics Rationale ILLUSTRATIVE
    • Most successful Web sites subscribe to the notion of providing some value to entice users Site Value Given to Non-Registrants Additional Value to Registrants Data Required Broadcast.com Audio/video media streaming Purchase of related merchandise
      • Basic
      • Demographic
      ZDNet.com Technology news, content and information E-mailed updates, newsletters, discounts, downloads (some subscription registration)
      • Basic
      • Demographic
      • Lifestyle
      • (Transactions)
      HP.com Product information, support Warranty, updates, purchase downloads
      • Basic
      • Demographic
      • Lifestyle
      • Technology
      Palm.com Palm Palm VII Palm – warranty, e-mailed newsletter/updates InSync online newsletter Palm VII – Palm.net network ($9.95/month) – complete data management network on web and product
      • Basic
      • Demographic
      • Lifestyle
      • Transaction
      • Technology
      Adobe.com Product information, galleries, samples Downloads, user groups, beta testing
      • Basic
      • Demographic
      Quicken.com News, product infor-mation, some inter-active questionnaires Personal portfolio tracking, online banking, credit verification and reports, automatic updates of client based database
      • Basic
      • Demographic
      • Lifestyle
      • Transaction
      • Technology?
      • Transactions
      Basic: Name, e-mail Demographic: Address, phone, work, country Lifestyle: Preferences Transaction: Billing, credit info. Technology: System architecture
    • Most successful Web sites provide some value to entice users (cont’d) Site Value Given to Non-Registrants Additional Value to Registrants Data Required Real.com Viewers: Info on products Developers: Info on products/services Viewers: Ability to stream multimedia content Developers: customer support, “solution” packages, development tools, marketing assistance Developers: info. On products/services
      • Viewers
      • Basic
      • Demographic
      • Technical
      • Transactional
      Amazon.com Browse, search, compare multiple products and services Recommendations, personalized e-mail, 1-click transactions
      • Basic
      • Demographic
      • Lifestyle
      • Transactions
      • Developers
      • Basic
      • Demographic
      • Transactional
      • Detailed work info.
      • Referral info.
      Basic: Name, e-mail Demographic: Address, phone, work, country Lifestyle: Preferences Transaction: Billing, credit info. Technology: System architecture MP3.com Listeners: Artist promotions, sampling of music Artists: N/A Listeners: download music, free DAM CD Artists: promotions, distribution, feedback
      • Listeners
      • Basic
      • Demographic
      • Lifestyle
      • Transaction
      • Artists
      • Basic
      • Demographic
      • Lifestyle
      • Band info.