The Hybrid Company: Reach All Your Customers Through Multi-Channels Anytime, Anywhere

320 Pages·2001·1.61 MB·English

by  Bernadette Tiernan

This publication is designed to provide accurate and authoritative information
in regard to the subject matter covered. It is sold with the understanding that the
publisher is not engaged in rendering legal, accounting, or other professional
service. If legal advice or other expert assistance is required, the services of a
competent professional person should be sought.
Senior Acquisitions Editor: Jean Iversen Cook
Senior Managing Editor: Jack Kiburz
Interior Design: Lucy Jenkins
Cover Design: Jody Billert, Billert Communications
Typesetting: the dotted i
© 2001 by Dearborn Financial Publishing, Inc.
Published by Dearborn Trade, a Kaplan Professional Company
All rights reserved. The text of this publication, or any part thereof, may not be
reproduced in any manner whatsoever without written permission from the
publisher.
Printed in the United States of America
01 02 03 10 9 8 7 6 5 4 3 2 1
Library of Congress Cataloging-in-Publication Data
Tiernan, Bernadette.
The hybrid company : reach all your customers through multi-channels
anytime, anywhere / Bernadette Tiernan.
p. cm.
Includes index.
ISBN 0-7931-4294-6
1. Electronic commerce. 2. Internet marketing. 3. Internet
advertising. I. Title.
HF5548.32 .T534 2001
658.8(cid:2)4—dc21 2001001414
Dearborn Trade books are available at special quantity discounts to use for sales
promotions, employee premiums, or educational purposes. Please call our special
sales department to order or for more information, at 800-621-9621, ext. 4410, or
write Dearborn Trade Publishing, 155 N. Wacker Drive, Chicago, IL 60606-1719.
Dedication
To my husband, Bill Tiernan, with gratitude for his encourage-
ment and help
Acknowledgments
My sincere thanks to Jean Iversen Cook, Dearborn Trade senior
acquisitions editor, for her confidence and support of The Hybrid
Company from its earliest stages. I am also grateful to the leaders of
the New Jersey Small Business Development Center at the Rutgers
Graduate School of Management, in particular Brenda Hopper,
Alyson Miller-Greenfield, and Nat Bender, all of whom provided help
with research and referrals. Thanks to Katherine, Billy, and Caroline
Tiernan for their patience and willingness to help out whenever I
needed them.
iv
Contents
Introduction xiii
1. The Birth of Hybrid Companies 1
The Mandate to Multi-Channel 2
Definition of a Hybrid Company 2
The Competitive Advantage 3
Characteristics of Hybrid Companies 4
Early Mistakes 6
Using the Web for Marketing Only 7
Inconsistent Pricing Policies 8
Out-of-Sync Inventory Tracking 8
Failure to Expand Product Lines across Channels 8
No Effort to Drive Traffic among All Channels 9
Chapter Summary 10
2. Changes @ Internet Speed 12
Bulls and Bears:The Stock Market Revisited 12
The Changing Role of Venture Capitalists 14
Tech Labor 16
The Growth of Market Exchanges 17
The Impact of Mergers 17
Dot-Coms Near Defection 18
v
vi Contents
Raising the Level of Customers’Expectations 19
New Technologies Create New Challenges 20
Peer-to-Peer File Sharing 21
ASP Revolution 22
Wireless 22
Handheld Devices 23
Mobile Commerce 23
MSPs 24
Convergence 24
Voice Technology 25
Interactive Television 26
Webcams 26
Electronic Publishing 27
Taxation with Representation 28
Chapter Summary 29
3. Hybrid Leaders and Their Strategies for Success 30
Parameters of Success 30
Success Strategies Defined 31
Brand Builders 31
Channel Synchronizers 33
Merchandising Masters 34
Customer Centric 34
Alliance Builders 36
B2B Maximizers 37
Future Focused 38
Creating New Business Models 39
Assessment:Are You Ready to Create a Hybrid Company? 40
Chapter Summary 40
4. Clicks First 43
From Clicks to Catalogs 43
From Clicks to Bricks 45
The Clicks-to-Hybrid Advantage 46
When Clicks Established First:Case Studies 49
RedEnvelope,Inc. 50
EZiba.com 54
ConsciousMedia.com 56
UrbanRealtors.com 59
Dot-Coms,Now Hybrids,Worth Watching 61
Contents vii
The E*Trade Group 62
IdeaForest and Joann.com 62
Marketplace Exchanges as Clicks 63
When Dot-Coms Die 63
Boo.com 64
Pets.com 64
Gazoontite.com 66
When Pure-Plays Work 67
Lessons from Pure-Plays 69
Steps to Implement Multi-Channels from Clicks First 70
Chapter Summary 72
5. Bricks First 74
From Bricks to Clicks,Catalogs,and Kiosks 76
Proactive Mall Strategies 78
Kiosks as Channels 79
Manufacturers Selling Directly Online 80
Couture Clicks 82
When Bricks Established First:Case Studies 83
Gap Inc. 86
Charles Schwab 87
Staples,Inc. 91
Williams-Sonoma,Inc. 93
Nordstrom,Inc. 97
The Home Depot,Inc. 101
Barnes & Noble,Inc. 106
Kmart/Bluelight.com 110
Blockbuster,Inc. 113
RadioShack Corp. 116
Steps to Implement Multi-Channels from Bricks First 119
Chapter Summary 122
6. Catalogs First 123
Catalog Advantages 124
Case Studies of Catalogs First 126
Gateway,Inc. 129
Lands’End,Inc. 131
Dell Computer Corp. 134
Vermont Teddy Bear Co.,Inc. 138
L.L.Bean,Inc. 140
viii Contents
Coldwater Creek,Inc. 142
Hanover Direct,Inc. 145
Steps to Implement Multi-Channels from Catalogs First 147
Chapter Summary 150
7. Creating the E-commerce Channel 152
Moving to Clicks 153
Application Flow Management 153
Placement in the Organization 154
Outsourcing Relationships 155
New Titles for E-business 155
Security 156
Dial-up Service Problems 157
Designing for Different Bandwidths 157
Designing for Broadband 159
Designing for Wireless 159
Selecting Services 160
Call Centers 160
Online Customer Support 161
Speech Technology 162
Order Fulfillment 163
Customer Relationship Management (CRM) 163
Digital Credentials 163
Application Service Providers (ASPs) 164
Online Collaboration Tools and Intranets 167
Performance Testing 168
Performance Measurement 169
Four E-Business Leaders 169
Oracle Corp. 170
Siebel Systems,Inc. 171
Cisco Systems,Inc. 172
IBM 172
Chapter Summary 173
8. Multimedia Marketing Trends 175
The Marketing Challenge for Hybrid Companies 176
Targeting the Customer 177
Research for Segmentation and Targeting 178
Branding 181
Reaching the Customer 181
Contents ix
Advertising through Traditional and Nontraditional Methods 182
New Media Marketing Strategies 193
Promotions 198
Public Relations Strategies 199
Evaluating the Effectiveness of Campaigns 201
Chapter Summary 201
9. Knowledge Management 203
Impact on the Success Strategies of Hybrid Companies 205
The Human Infrastructure 209
Crossing the Lines of Departments and Channels 209
Data Warehousing and Data Mining 210
The Technological Infrastructure 211
Customer Relationship Management (CRM) Applications 214
Customer Profiling Tools 216
Personalization Services 216
Automated E-mail Responses 217
Creating Business Intelligence 217
Intelligence from Call Data 218
E-contact Centers 219
Chapter Summary 219
10. The Personal Touch and Customer Communities 221
Reach Out and Touch Someone 222
The Challenge for Hybrid Companies 223
Dashed Expectations 224
Exceeding Expectations 226
Telephone Contact 227
E-mail 228
Fax 228
Live Online Assistance 229
Voice Assistance 229
Proactive Live Assistance 230
How Hybrid Companies Build Customer Communities 230
Live Events 231
Online Events 233
Chat Rooms 233
Message Boards/Discussion Boards 233
Examples from Hybrid Leaders 235
The Home Depot,Inc. 235
x Contents
Barnes & Noble,Inc. 236
Staples,Inc. 237
ConsciousMedia 238
Chapter Summary 238
11. Warehousing,Shipping,and Handling Returns 240
Transition Issues for Hybrid Companies 241
Clicks First 242
Bricks First 243
Catalogs First 243
Warehousing 244
Shipping 246
Handling Returns 249
Fulfillment Services 250
Strategic Decisions 253
Chapter Summary 254
12. Privacy,Security,and Legal Issues 255
Privacy versus Personalization 256
DoubleClick’s Disaster 256
Consumer Criticism 257
Creating Consumer Behavior Profiles 258
Cookies 258
Web Bugs 259
Opt In/Opt Out 260
Location-Finding Technology 260
Consumer Access to Personal Data 261
Achieving Anonymity 261
Support Organizations 262
Delete Cookies 263
Infomediaries 263
Platform for Privacy Preferences (P3P) 264
Attempts to Protect Consumer Privacy 264
Chief Privacy Officer (CPO) 264
Independent Auditors 265
TRUSTe 266
Better Business Bureaus 266
Recommendations for Hybrid Companies 267
Sample Privacy Policies 268
Customer Files as Dot-Com Property 271