Friday 6 July 2007

E-Commerce Case Study

a) Brief Company overview:

247 electrical’ is a UK based, online company that sells allsorts of electrical goods from household appliances to gadgets, TV/audio equipment and lighting. They offer competitive prices online and aim to provide outstanding service to its customers.

Placing the order is very straightforward; it’s the all so familiar routine of ‘creating an account’, ‘adding the goods to your cart’ then ‘checking out’. There is a section in your online account where you can check the status of your order, very useful to the buyer.

Site Stats for 247electrical.co.uk: (provided by www.alexa.com)

Traffic Rank for 247electrical.co.uk: 97,430 (down9,319), Google page rank: 4/10

Speed: Average (52% of sites are faster), Avg Load Time: 2.3 Seconds

Other sites that link to this site: 67

Online Since: 03-Nov-1999

Traffic Rank for 247electrical.co.uk:

Today

1 wk. Avg.

3 mos. Avg.

3 mos. Change

N/A*

198,961

97,430

down 9,319

Where do people go on 247electrical.co.uk?

  • 247electrical.co.uk - 94%
  • shop.247electrical.co.uk - 6%

Reach per million users: 247electrical.co.uk

Today

1 wk. Avg.

3 mos. Avg.

3 mos. Change

9.5

6

12

down 11%

Page Views for 247electrical.co.uk:

Page Views per user:

Today

1 wk. Avg.

3 mos. Avg.

3 mos. Change

2.5

2.3

3.8

No Change

www.247electrical.co.uk: Estimate 106,700 visits in the previous 30 days.

b) Recommendations for improvement:

What is wrong with the current Site?

My research indicates that the site’s design is outdated, inefficient, has usability issues, no PPC adverts to generate revenue, the search engine optimization is not good, the traffic ranking for the website is dropping gradually.

  • Drive revenue

    • Boost visitor numbers/improve customer acquisition.
      • Improve search engine optimization.
    • Increase conversion rates.
      • User friendly technology.
      • Improved information architecture.
      • Less shopping cart abandonment’s.
      • Improved site search capability.
    • Increase basket value.
      • Up sell and cross-sell functionality.
      • Relevant promotions.
    • Improve customer retention.
      • Customization and personalization.
      • Dynamic pricing.
    • More accurate and granular reporting to boost understanding of most profitable product lines/products.

  • Reduce costs

o Increased automation/streamlining of business processes.

o Reduce or remove need for internal IT resources.

o Scalable technology without need for major investment later on.

o Pay for what you use (on-demand solution).

o Reduced call centre costs though better service online.

  • Improve branding

    • Better customer experience.
      • Faster website
      • Seamless experience across channels (e.g. call centre synchronization for customer support).
      • Tried and tested technologies.
    • Improved website design.
      • Less clutter.
      • Economy of processes/questions.

Search engine Optimization - Techniques for advanced key phrase analysis
- Developing an integrated search engine marketing strategy across paid and natural search
- Improve page inclusion and reporting using Google Sitemaps
- Detailed coverage of on-page optimization factors including document meta data, copywriting and code structure explaining the factors which really matter.
- To increase the click-through rate in the search engine results page
- SEO strategies for refining site architecture
- Planning and executing a link-building campaign
- Including key factors to improve landing page effectiveness

Correct current site faults/usability issues – Typical issues include poor site structure, dated design and out of date content. User centered design - This involves applying a range of usability and information architecture techniques and usability testing. If the system is difficult to use, people won't use it. Beyond the user-centered design process, there is also the final visual design. This produces a final appearance for the site, including the branding, page design, graphics and colors. As part of my website redesign, the organization will need to purchase a new (or replacement) content management system (CMS). Introduce intelligent product suggestions based on the customer’s previous purchases. User session can be used to help prevent abandoned shopping carts. Each visit to a web site by one person. The session is usually "ended" when all pages have been closed or after a specific time of inactivity. A customer review and a product rating feature could be added to boost the confidence of the customers, presenting the results from keyword search concisely, meaningfully and persuasively to the customer.

CRM (Customer Relationship Management) - The entire process of a pre-sales, sales and service relationship with a customer. Good CRM software is much more efficient than fragmented records as it can save time in tracking communications and transactions with a particular person.

Generate potential customers, members or leads - Anytime when purchasing goods on the internet you are in effect giving the named company your trust and that’s not to mention your hard earned money.

Customer acquisition: Home page; Product-specific landing page; Email promotion landing page; Refer-a-friend link.

Sales conversion: Navigation; Search ; Product category page; Product page; Up-sell/cross-sell; Feature filtering; Product description; Product images; Add to basket process; Checkout.

Customer retention: After-sales email; Registration; Email promotions; Privacy policy.

Whole site review: Site architecture; Navigation; Search; Feature filtering.

Whole pages: Home page; Product category page; Product page; Search results page; shopping basket/cart; Checkout page.

Page elements: Navigation panel; Search box; Up-sell/cross-sell; about us; Contact us; Shopping basket elements.

Customer journeys: Help customer to find products; Help customers choose; Help customers buy; Add to basket process; Checkout.

c) Audience, Market and identification of demand:

UK Reach / Penetration of Interactive Services

Over half (55%) of households in Great Britain (13.1 million) could access the internet from home in May 2005 [National Statistics Omnibus Survey, May 2005]

60% of the adult population (aged 15+) in Great Britain used the Internet in September 2005 (up from 45% in April 2002) [MORI Technology Tracker, 2005].

What UK users are going online for?

Online applications used by broadband and dial-up users

[Ofcom, Q1, 2005]

Search Marketing

What is Yahoo! Search Marketing?

Yahoo! Search Marketing drives targeted leads straight to your company’s website. They get the website listed on the results pages of the most widely used Internet search engines, so your products and services appear in front of customers precisely at the time they are searching for what you sell.

Yahoo! Search Marketing is the most cost-effective way to advertise a business online because you only pay for customers who actually visit your website and bids for keywords relevant to your business start from as little as 10p – giving you a great return on investment.

It’s worth noting that Yahoo! Search Marketing checks keywords and websites for relevance, which means every click counts, translating into a highly targeted lead for your website.

Choosing keywords - Keywords are terms and phrases you would naturally associate with whatever you sell. If you were searching for your products and services using a search engine, what would you type in the box? A broad portfolio of phrases and keywords will give you guaranteed visibility. What’s more, you only pay for the customers who actually click through to your website.

The benefits of tracking your results:

Increase revenue:
Drive more sales with fewer advertising costs.

Save time:
Only spend time managing the advertising methods that work.

Save money:
Only spend money on the methods that are most effective.

Improve the Key words:

· Test new keywords

· Find out if increasing your bid and moving to the top position improves your conversions

· Try new titles and descriptions

Yahoo! Search Marketing's Sponsored Search model brings together several distinct parties:

The site should possess substantial content that is clearly and obviously reflective of a search term's meaning.

* Advertisers

* Affiliate partners

* Users

* Yahoo! Search Marketing

When combined, these groups create a dynamic form of marketing. And while each party has unique concerns, all four have a vested interest in one important area: The quality and relevancy of advertiser listings.

d) Review against competitors/similar business within their market:

www.comet.co.uk – Traffic Rank for comet.co.uk: 4,303 (up2,260)

Reach for comet.co.uk: Reach per million users:

Today

1 wk. Avg.

3 mos. Avg.

3 mos. Change

220

325

215.5

up 39%

www.maplin.co.ukTraffic Rank for maplin.co.uk: 6,232 (down92)

Reach for maplin.co.uk: Reach per million users:

Today

1 wk. Avg.

3 mos. Avg.

3 mos. Change

190

155

175

down 5%

www.dixons.co.uk - Traffic Rank for dixons.co.uk: 10,431 (up2,670)

Reach for dixons.co.uk: Reach per million users:

Today

1 wk. Avg.

3 mos. Avg.

3 mos. Change

105

135

122

up 28%

e) Technology Plan: Hardware/Software Solutions:

a) Server platform and hardware requirements
If we plan to set up a website that uses programming environments such as Active Server Pages (ASP), Visual Basic scripts, Cold Fusion or Microsoft Access or Microsoft SQL database, in this case, we should use a web hosting service that supports Windows platform such as Windows XP or Windows 2003 servers. Likewise, if we also plan to use programming languages such as Perl, CGI, SSI, PHP or Mysql database, then any web hosting plans that support Unix/Linux platform should be sufficient to meet the hosting requirements.

b) Disk space & Bandwidth requirement
another technical requirement that you need to consider before selecting a web hosting plan, i.e. disk space and bandwidth. If you intend to publish a website that does not have a lot of contents (meaning, web pages), then the disk space requirement may not be a big concern to you. In general, a disk space with 2000MB to 5000MB should be enough to meet your hosting requirement. In contrast, if you plan to host a website with enormous amount of graphic pictures, databases, forms then you should consider a web hosting plan that provide huge disk space, for example, 5000 MB to 10,000 MB. Similarly, the bandwidth requirement will depend on your site traffic estimation. Obviously, a website that expects to attract high traffic will consume the monthly bandwidth allowance very fast. If so, you will need to find one web hosting service that offer huge bandwidth with 40 GB to 100 GB per month. Depending upon your website requirement, choosing a web hosting service that provides sufficient amount of disk space and bandwidth is crucial consideration to prevent paying extra costs in the future should you overuse the monthly disk space and bandwidth allowance.

c) Other hosting features
While the above requirements are utmost important, there are other hosting features that you have to consider too. Can web hosting provider support video clips on your website, if you have? Is the web hosting service compatible with Dreamweaver or FrontPage web authoring tool? Do you plan to set up a virtual store online? Can the host support the e-commerce features without adding extra cost to your monthly payments? On top of that, you may also want to find out the number of email accounts provided, number of FTP accounts, web statistic software (analyze your web traffic), type of control panel supported (manage your web hosting account), database and scripting languages supported and etc.

Reliability and scalability

A first-class web hosting provider offers reliable server uptime and fast Internet connection. You should only choose a web hosting service that guarantee at least 99% server uptime with high-speed Internet backbones using at least OC3 (Optical Carrier) lines (155 Megabits per second) or above instead of T1 or T3 lines. A reliable web hosting provider usually invests heavily on their data center infrastructure with high performance servers, high speed multiple backbones providers with fail-over redundancy, backup power generators and firewall software protection in place to ensure they meet the uptime guarantee specified in the terms of service. Similarly, you should choose a web hosting service with hardware facilities that designed for scalability, so that they can grow with your business. For example, if you need to increase more disk space, bandwidth or number of mySQL databases, you should be able to upgrade as needed without any problems.

f) Promotion and analytics plan:

Analytics helps you find out what keywords attract your most desirable prospects, what advertising copy pulled the most responses, and what landing pages and content make the most money for you.

It’s better to Spend on marketing, than on web analytics.

Its best to use Google Analytics for this particular website as it is a hosted service that runs on the same servers that power Google. From large, high-traffic corporate sites to small sites, Google Analytics deliver consistent service. If you have an AdWords account, you can use Google Analytics directly from the AdWords interface. Google Analytics also calculates ROI metrics from automatically imported cost and keyword tracking data, saving time. Google Analytics also tracks all online campaigns, from emails to keywords, regardless of search engine or referral source.

How to Measure Results

There are three standard ways to measure the effectiveness of your online advertising spend:

Conversion rate measures how many visits to your site convert to a sale or action.

Return on advertising spend (ROAS) shows you how much revenue you generated per pound you spent on an advertising method.

Return on investment (ROI) tells you how much profit you generated per pound you spent on an advertising method.

For Example:

The site that sells electronic goods had the following numbers in a given month:

  • £1000 spend on advertising to bring potential customers to the site
  • 10,000 visitors to the site
  • 500 Mp3 players were sold
  • £100 in revenue per Mp3 player
  • £20 profit per Mp3 Player
  • Total monthly revenue of £50,000 (500 x £100)
  • Total monthly profit of £10,000 (500 x £20)

The results: Conversion Rate:
500 visitors who purchase / 10,000 total visitors = 5% conversion rate

Return on Ad Spend (ROAS):
£50,000 revenue / £1,000 spent on advertising = 5000% ROAS, or £50 in revenue for each pound spent on advertising

Return on Investment (ROI):
£10,000 profit / £1,000 spent on advertising = 1000% ROI, or £10 in profit for each pound spent on advertising

g) Top-Level Implementations plan:

• clean, search engine optimized code

• crisp, professional, remarkable design & aesthetics

• memorable logo design & branding

• reliable, secure, functional e-commerce platforms

• stable, scaleable hosting solutions

Reliability - features like load balancing which ensures that the data stored on a server is quickly accessible, even at the busiest times of the day. Identical copies of the site are hosted on more than one server. If the load on one server is too great, visitors are redirected to another server which is not so busy.

Location - Usually you should choose a web host which is located in the same country as yourself. It not only make telephone support easier but search engines sometimes use the location of a server as a means of helping decide which national directory to place a site in.

Tech Support - Look for a host that has 24 hour support every day of the year. You site should be open for business and able to accept orders 24 hours, 7 days a week. The majority of the larger hosting companies are able to offer this as standard. Telephone support is essential. If your web host offers email support only, it may mean you have to wait several hours before you can get a reply.

Perl Scripts - All paid accounts should offer the ability to run Perl CGI facilities as standard. Use only hosts which allow you to install your own Perl scripts and not just ones supplied by the hosting company. They will offer the ability to host a wider range of shopping carts on your own site, including the advanced Perl version of our own software.

SSL Secure Server - Merchants who are not using not using a third part credit card processor and are collecting the credit cards directly via their own own website will require a secure SSL facility. Your customers will expect to see the secure padlock symbol at the bottom of the browser screen and will be reluctant to make an order without it.


Check if shopping cart meets the following conditions.

  • The title of each page of your store should be unique and relevant to the items being sold on that page. Check the title of the page in your browser, some shopping carts, especially database driven ones are unable to do this.
  • The description and price of items been sold should be easily read by any search engines visiting your site.

Search Engines
Submit to the 3 main search engines, Google, MSN and Yahoo. You can ignore the rest, as they will provide only a tiny proportion of the visitors to your site. Once your site is established you can pretty much guarantee the others will find your site anyway by following links elsewhere on the web.

Directories
The most important of these is DMOZ or Open Directory Project. Its data been used in directory searches for some of the most important search engines including Google, Netscape and AOL. However because of the extremely large number of submissions received the waiting for a site to be reviewed can be considerable. Submit to the category most revelent to your business. Only those sites that are considered to be of reasonable quality and content are included.

Links
Links are vital if you wish your website to rank well in search engines. The number of links combined with their quality is a major factor in how search engines determine rankings.

Overhead’s involved in Creating and Maintaining a Web site:

  • Development tasks need to be planned and scheduled
  • Content must be developed, organized and edited
  • Site needs to be marketed
  • A design firm should be employed for initial coding and graphics
  • Content must be updated to keep the site relevant and interesting (this will most likely involve modifying the entire flow and ownership of information within the organization, not just making it the responsibility of the webmaster)
  • HTML-knowledgeable person needs to be on site

Think in terms of five positions that need to be introduced into your organization when you introduce a website. These five positions can be held by a single person, but an effective website is a lot of work to maintain.

Staffing for a Web site:

  1. Content Manager
  2. Server Manager
  3. Project Manager
  4. Marketing Manager
  5. Web Design Firm (contracted)

Questions to Ask Yourself and Your Organization:

  • What is our message and whom are we targeting?
  • What will it bring us that we don't already have?
  • How will it improve what we already have?
  • What will be the benefits of the increased online exposure?
  • How will we reassign staff duties to provide for ongoing maintenance and updating?

h) Estimates for costs of implementation:

Two Hours E-Commerce/E-Business Initial Consulting, One Domain Name (1 Year), One Hosting Account (1 Year), Dedicated IP Address (1 Year Included, InstantSSL Security Certificate ($125,000 Insurance Included, 1 Year Included), Completely Custom Store Template/Theme Design, Unlimited Pages, Unlimited Products, Full-Featured Easy Online Administration, Inventory Management, Customer/Order Man., Taxes, Memberships, Newsletter, Site Search, Reviews, Shipping, Docs & Support, PayPal OR Google Checkout Payment Integration, Image Thumbnailer (Automatically creates and formats thumbnail versions of product pictures), WYSIWYG HTML Editor (Easy, web-based maintenance of pages and product descriptions), Attribute Copier (Efficient product management tool), Featured Products (Control your marketing!), Discounts / Coupons (Excellent promotional tools).

Cross-Sell Store Module, Affiliates Store Module, User Tracking Store Module, SEO URLs Store Module, Google XML Sitemap Store Module, Adwords Store Tracking, Module conversation on keyword selection., Conversation on content development and optimization, Basic keyword research, based on targeted industry and business scope, Keyword analysis & selection based on effectiveness & competition, Homepage search engine optimization, Implementation of targeted, optimized META tags including titles, keywords and descriptions, Setup of “Link” page and linking strategy, Major directory category research, identification, and submission, Hand submissions to the top search

engines (Google, Yahoo!, etc...) & directories like DMOZ, Submission to Yahoo! Local and Google

Local, Google AdWords PPC Campaign Setup, Yahoo! Overture PPC Campaign Setup, Sub-Total $3490

I) Budget & Revenue:

  • Hardware and Infrastructure
  • Software
  • Internet
  • Training
  • Support
  • Consumables
  • Other

Managing funds on a day-to-day basis can be time consuming. But neglecting this process can lead to several problems. For example, you could overspend, or your listing(s) could be taken offline due to a lack of funds in your account. Fortunately, the daily budgeting feature takes care of fund management and ensures a constant flow of customers. Budgeting distributes your spending throughout the day and the month. This ensures that your listings appear online every day of the month and that you stay on budget.

Example, if you budget £100 a day, your listings are displayed at regulated intervals so that you receive clicks totaling approximately £100 throughout the day. The same principle applies to your monthly budget, which is automatically calculated by multiplying your daily budget by 30.

Experiment to get the best results
your daily budget controls how much you spend each day. And since you can’t accidentally overspend or exhaust your budget too soon, you can experiment freely with keywords, listings and bid amounts to discover what methods drive the best results.

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