ecommerce Flashcards
TRANSACTIONAL FUNNEL
A - awareness
I - interest
D - desire
A - action
order now, enjoy this,
place order
Call to action (CTA)
THE SHOPPER’S JOURNEY IN THE AGE OF DIGITAL
Tv
Friends and family
Online
Print media
Brick and mortar stores (physical store)
EVOLUTION OF MASS MEDIA
Print from 1400s
Recordings from 1890s
Cinema from 1900s
Radio from 1920s
TV from 1940
Internet from 1992
Mobile from 1998
HOW WE RECEIVE INFO FROM THE PAST
TV
Print
Radio
Billboards
Word of mouth
Snail mail
is not just a receiver of information, but has also become a content creator
hyper connected consumer
The Hyper-connected consumer:
Has access to more
information
Has a voice
Is also a content creator
DIGITAL HAS EMPOWERED CONSUMERS
Mobility – viewing takes place in alternate
locations using mobile devices
Alternate Content Providers – wide array
of programming available without tv or
cable
Multi-tasking – viewers are more likely to
be engaged in another activity while
watching tv
Scheduling – ability to watch when you
want to watch it is driving consumer
choices
User-Generated Content – time spent
creating your own content or watching
other people’s content takes time from
traditional tv.
DIGITAL HAS CHANGED TV VIEWING HABITS
Digital has disrupted the consumer’s path to purchase. Now, consumers use social
media and price comparison websites to help make purchasing decisions.
DIGITAL HAS CHANGED SHOPPING BEHAVIOR
Ordinary people who are known to be experts in a particular topic have a
following online
The collective power of ordinary people can shape and influence conversations
online.
DIGITAL HAS MADE INFLUENCERS OUT OF ORDINARY PEOPLE
The digital audience is not afraid to express opinions, good or bad. They also have access to the most powerful distribution channel ever made so far.
THE DIGITAL AUDIENCE DEMANDS AUTHENTICITY
Digital evens out the playing field between big and small players. For a fraction of the cost, brands or companies
with limited budgets can reach their desired market with creative and targeted
campaigns.
DIGITAL EVENS OUT THE PLAYING FIELD
The number of unique people who saw a particular ad or content
Reach
Fullfillment can be physical or digital
Within this model are various set-ups
Drop-shipping: a store
doesn’t keep stock of the
products it sells.
Affiliate Marketing: a 3rd party
products is listed on a site ,
every time that products is
purchased from that site, a
commission is paid to the site
owner.
The product can be something digital
such as video-on-demand purchased
and streamed from i-tunes
Ex: Walmart, Amazon that sells goods
and digital products (kindle books)
SELL A PRODUCT
Fulfillment can be physical or digital
It can be a service sold online, but the
fulfillment is offline.
Ex. Dealgrocer
Sewrvice sold online and fulfillment is
also online
Ex. Online tutorials, online therapy
SELL A SERVICE
Raise money digitally for investment or
non for profit endeavors
Greenpeace.org
Kidstarter
GoFundMe
FUNDRAISING
Products ,services or other types of
access, privileges or discounts can be
sold via subscription
Fulfillment can be physical, digital, or
mixed
Subscription categories:
Entertainment: Netflix, Hulu,
Spotify
Business Media Access:
Hootsuite, Harvard Business
Review
Discounts/Loyalty: Amazon
Prime
Product Fulfilment: Birchbox
Software as a service:
Microsoft 365, Evernote
SELL A SUBSCRIPTION
companies to sell the data they are able
to collect
Alexa.com
Social listening tools such as social
studio
Publishers
GATHER AND RESELL DATA
Hottest growing business in the digital
world
Brokers bring together the buyer and the
seller
They list a product or a service that
another company offers, collect the
payment, and let the other company fulfill
the promise of the offer.
Airbnb, Uber, Grab
BROKER TRANSACTIONS
Digital properties which sell leads are
similar to the brokering transactions
category in that they connect buyers and
sellers
They get paid for sending a customer and
their details to a potential seller.
Ecomparemo.com, Moneymax.ph
SELL LEADS OR REFERRALS
Digital advertising has the ability to target
ads based on a user’s profile or current
needs
This is why over 70% of all internet
advertising is on Google or Facebook:
both of these sites offer advertising
platforms that are highly targeted as well
as of massive scale.
Sponsorship: when a brand takes over a
section of a site
ADVERTISING OR SPONSORSHIP
The internet’s biggest success story is a
directory – google, where sites pay to be
listed more prominently than they
otherwise might be.
Zomato, yelp and TripAdvisor are also
part of this model with have advanced
revenue models in which sites may
charge a variety of fees in the form of
listing fee to be in a directory, or to have
an “enhanced” listing, or may even use
the affiliate/referral mode
DIRECTORY
Digital properties whose purpose is to
simply promote something else, often
another channel
Company websites fall under this
category
MARKETING
Digital ads
Search Engine Optimization
(SEO)
Considerations