Multi-channel Internet Sales Review

Internet Sales Trends
Understanding the Major On-line Sales and Distribution Systems on the Web

Goals of Today
Outline the various Internet Sales Channels
Current State of Web
Business potential of each
Examples of missed opportunities
Discuss Customer Buying Trends
Consumer
Business
Government / Education
Recommend Specific Actions
Short term
Long term

About Yeoman
Multi-Channel Distribution Approach
Focus on entire web
Segment into ‘channels’
Match customer buying patterns
Internet focus is on Sales, not Marketing
Rely on usage statistics to support any assumptions

What’s an Internet Sales Channel?
Anywhere from 10 – 30% of a manufacturers sales comes from one of these channels

2009 Internet Revenue by Distribution Point
Source: 2009Aggregation of IDC/Gartner stats for worldwide sales via different channels

The Big Myth
Each are distinct channels with their own group of competitors, systems, and links

What Channels Matter?
Base on customer pattern
Presence – Are they active users
Propensity – Are they likely to buy while there
Purchase – Are they buying
This is a separate criterion from what you would use when looking at general marketing, branding, or customer support.

Traditional Sales & Distribution Model

Internet Delivery not consistent

Internet Sales Challenge
Each Channel has multiple vendors
None of the systems are interconnected
Existence in one may HINDER client ability to find you in another
Can require significant investment
Must be aware of traditional channel conflict
Not the core focus of any one group within a Company
Often get lumped in with IT, Marketing, Finance, or Support depending on system

Direct Channel
Easily understood
10-30% of buyers look to Company site first
Most common source of channel conflict
Often have to compete with Corporate & Marketing teams
Who owns the site?
Major focus on “SEO”

Auction Systems
$100 billion market
EBay most commonly known
Heavy system use by consumers and heavy equipment mfg
Need to have presence to protect brand

Supply Chain / B2B
The Quiet Giant (<$200b)
Major vehicle for many organizations
Fast growth in Gov/Ed space
No interconnectivity or links to general search
Business is there, you may just not know about it!

Major E-Tailers
$180 billion last year
Top 500 dominate market
Controls a whopping 30% of user traffic
Most have virtual inventories and direct feeds
Major mistake to believe its consumer only

Referral Systems
Account for 13% of all major E-tailer traffic
10% Growth in 2009
Requires feeds into core systems
Referral fees 1-6%
Will take feeds which help search engine ranking

Knowledge Systems
Very common on web
Focuses on specific topic
Controlled discussions
Higher end information
Separate from ‘selling’ site
DIFFERENT from social sites
You control content
No peer control
Brand is managed

Social Networking
Major focus for marketing
Are customers buying?
Need to stop wasting resources
Aggregate postings
Study traffic
Determine if sales oppty exists or is it just branding

Take Away Points
Key Items to remember:
Web serves multiple elements within a business
Marketing
Sales
Support
Development
Align the web responsibility and functions with the Lines of Business
Need to look at entire Internet infrastructure at a holistic level

www.yeomantechnologies.com
mhealey@yeomantechnologies.com
800-667-6098
Questions?