My father worked on his own pc after his fourties. I had my own pc when I was 12.

1. The change in shopping habbits • My father worked on his own pc after his fourties. • I had my own pc when I was 12. • My brother has a pc since 6. • Gartner G2 with 16449 respondents: • 39 % increase in internet sales in the last quarter of 2001 • 80.5 % go on buying • Only 6% give up

2. “Having a bright idea, a few million dollars in the bank from VCs, and a group of young and energetic founders were not enough to distinguish yourself in the long run”Luis D. Arjona, McKinsey “Traditional management adage: You cannot manage what you do not measure. E-business addendum: You cannot manage what you do not define.” Net Genesis- Target Marketing

3. “A major problem facing research libraries today is the lack of data about electronic resources and services.”Miller and Schmidt. “It takes all day to process 14 million filtered URLs. It’s a million per hour that we’re hitting. So, by the time I get the data from 400 machines sewn together and filter out the gifs and excludes and the impressions, it takes 14 hours to process.”A Service Company • Then which one is wrong ?

4. Every site collects data. However: Each site has its own way! “A lot of e-commerce companies just really don’t know how to measure their business right now. Nobody really knows because the industry is so new that there isn’t a standard of how to really measure your success and how to gauge your growth in the future. Is it going to be by your volume of ordering? Is it going to be by your repeat customers? ”A retailer company E-metrics : Measuring Web Success

5. Solution Seeking : Academicians • Association of Research Libraries (ARL) ;24 universities • DLF Initiative , Digital Library Federation • European Commission EQUINOX Project • The Publishing and Library Solutions Committee (PALS) • The International Coalition of Library Consortia (ICOLC)

6. Set of measurements which must (a) “be consistent with organizational missions, goals, and objective; (b) be integrated with an institution’s program review; (c) balance customer, stakeholder, and employee interests and needs; (d) establish accountability; and (e) include the collection and use of reliable and valid data.” • Study of users and uses • Cost and benefit analysis • Study of staff impact and needs • Engagement with information providers and their usage data services

7. Solution Seeking : Business Sector McKinsey & Company: “250 000 data points describing the behavior of on-line visitors to the sites of hundreds of companies, employing different models, during 18-month period from January 1999 to June 2000” NetGenesis and Target Marketing: White Paper “E-metrics / Business Metrics For The New Economy”

8. Paco Underhill • “Why We Buy: The Science of Shopping” • 65% of men trying a jeans buy the jeans, 25% of the woman. • The pet food should be located on a low shelf. • Larger-size men’s underwear should not. • However needs huge amount of time, employee, money! • Internet eases this procedure. • There is no data collection problem. The problem is how to evaluate and benefit them.

9. Where to start first? • What are our most important business goals at the moment • Who are our customers • What are we trying to accomplish • What challenges do we face • What channels bring customers to us • What are the drivers of the purchase behavior • Which marketing initiatives generate the most profitable customers

10. Which products or services present cross-sell and up-sell opportunities • Which online customers buy from online channels • What changes will make our site more customer-focused Determine your position, determine your goals and the tools you have, start doing the job, evaluate your job, correct mistakes and re-evaluate. E-metrics

11. How can e-metrics help us? • Segment and profile customers for optimal targeting and personalization • Understand customer lifecycles to develop customer acquisition and retention programs • Develop real-time marketing programs to cross-sell and up-sell customers • Evaluate web content, track the success of marketing campaigns and refine spending levels • Enhance site design and navigation to improve browse-to-buy ratios and retention rates • Reduce the costs of serving customers • Attract and keep customers

12. “shoe producer producing shoes not even considering the shoe size of the customers” • only 23% improve way of doing job • 77% still use page visits and hits • discipline that was always present in well-run organizations. • incumbents ran out dot-coms • incumbents with direct marketing channel (catalog sales) • tradeoff between attracting visitors and qualified visitors

13. Dot-coms, doing hard to do offline • Firms getting away from advertisement revenues Basic e-metric terms Person visiting the site....user Each time user explored the site ... Visit Each visit composed of.... page views Each click on images, texts..... hits

17. Customer Relationship Management Customer Lifecycle: 1) Reach: customers / potential customers number of people saw your ad / potential customers 2) Acquisition: First contact, making a contract? 3) Conversion: “We measure 16 types of conversion and 15 types of retention.” Portal Company

18. Converting acquired customer into an active customer. He buys, sets up a personnel profile, participates actively in joint discussions, chat forums, uses a product configurator. 4) Retention: keeping customers who already made at least one purchase from us. $250 to acquire a customer $24.5 in the first quarter $52.5 in the following quarters Retained spent 57% more than one time shoppers. 70% Retained consider re-purchase

19. 4) Loyalty: A regular customer of you, who also became an advocate of you. Constitutes vast amount of your sales. Makes your advertisement voluntarily. Customer Lifecycle Breaking 1) Abandonment: Broken purchase fatiguing effects -design/requirements technical inefficiencies -time consumption

20. The ratio of abandoned carts to completed purchases per day. • The number of items per abandoned cart vs. completed transactions. • The profile of items abandoned versus purchased. • The profile of a shopper versus a buyer. *Kinkos 2) Attrition: Customers going to a rivalry 3) Churn rate: ratio of attrited customers to the total number of customers at the end of any period 2000 customers 200 new customers 50 lost customers 50/2150 Churn rate 200/2000 growth rate

22. Customer E-metrics RFM of the customers: Recency/Frequency/Monetary Value Customer history gives the best information about customer behavior RFM divides into customer segments, that are not intuitively available from reports 1) Recency: how long it has been since your customer last visited your site Get back attrited customers by the use of cookies by special messages

23. 2) Frequency: The frequency of the user Often purchases: Frequent users need more interest, special offers, coupons, price reductions... Rare purchases: Determine demand, direct customers through purchase B2B: Especially important, Determine demand, learn customer 3) Monetary Value: Available after the first purchase

24. Cost Analysis 1) Acquisition cost: The ratio of advertising and promotional costs to number of click-throughs $50000 2000000 on banner and impressions 1% click through rate,then 20000 visits, $2.5 for each user 2) Cost per conversion is the ratio of advertising and promotional costs to number of sales. Convertiont rate 2.5% of the 20000 visits, 500 purchases conversion cost is $100

25. 3) Net Yield: Ratio of total promotion cost to total promotion results Two banners; one has a high click rate but low conversion rate, and the other a lower click rate but higher conversion rate Connect rate, Duration...

27. It is much more profitable for any firm to try to develop retention rates • E-metrics deals are much more profitable than cost deals Ford: vehicle pages, configurations liking, painting the car, selecting some audio ------ not potential customers review financing options likely to make a deal with the retailers Amazon : One click sales conversion 15%