1 / 12

MD253 - E-Commerce

MD253 - E-Commerce. Module 5: Virtual Communities Spring 2003. Some Types of Communities. Chat / Paging / Instant Messaging free-form, person-to-person moderated (e.g. Barnes & Noble author chats) Bulletin Boards Interactive Games / Contests

rigg
Download Presentation

MD253 - E-Commerce

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MD253 - E-Commerce Module 5: Virtual Communities Spring 2003

  2. Some Types of Communities • Chat / Paging / Instant Messaging • free-form, person-to-person • moderated (e.g. Barnes & Noble author chats) • Bulletin Boards • Interactive Games / Contests • e.g. EverQuest, You Don’t Know Jack, Fantasy Leagues • Homesteading • web site hosting services

  3. Users = Value? source: InternetWorld, Wired News

  4. Why Communities? • Higher sales among members • Users for 2/3 of sales from only 1/3 of users • Lower churn rates / higher retention • Message posters are twice as loyal • Longer & more frequent visits • Message posters visit 9 x as often • More page views per session • Lower customer service costs • ex. Cisco Connection Online Source: McKinsey Quarterly

  5. Visits, Page Views, & Retention

  6. Loyalty Sales

  7. Community Participation • Focus of online communities • 42% professional • 35% social • 18% hobby • Examples: • Cisco Connection Online, QuestLink, State Street FXConnect • L’Eggs ?? source: BusinessWeek / Harris

  8. Challenges • Some services suffer Congestion Externalities • at some point value can decrease with expansion • ex. Ultima Online, America Online flat-rate fiasco • lessons: scale, focus/concentrate, prune • Generating contributions & stickiness • incentives: special recognition, bios, gifts. E-mail reminders • Revenue models (ads, subscription, commerce) • ad conflict: participate or click-through • possible solutions include no-click-through ads, forum sponsorships, and ‘bridge sites’ • Free Speech • relationship with advertisers & among users

More Related