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Chapter 5

Strategy Formulation: Customer Interface

McGraw-Hill/Irwin

Chapter 5: Strategy Formulation: Customer Interface

Questions Answered in this Chapter:

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What are the seven design elements of the customer interface? What determines the look-and-feel of the design? What are the three content classifications? Why be concerned with community? What are the two ways in which websites can achieve customization? What types of communication can a firm maintain with its customer base? How does a firm connect with other businesses? What commerce features help websites perform financial transactions?

Introduction
Customer interface
is the virtual representation of a firm's chosen value proposition

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Seven design elements of customer interface (7Cs)

Context Content Community Customization Communication Connection Commerce

Exhibit 5.1: The 7Cs of Customer Interface

Context Sites layout and design

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Content Text, pictures, sound, and video that webpages contain

Commerce Sites capabilities to enable commercial transactions Connection Degree site is linked to other sites Communication The ways sites enable siteto-user communication or two-way communication

Community The ways sites enable userto-user communication

Customization Sites ability to self-tailor to different users or to allow users to personalize the site

Exhibit 5.2: Fit and Reinforcement of the 7Cs

Business Model

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Individually Supporting Fit

Context

Content

Community

Customization Communication

Connection

Commerce

Consistent Reinforcement

What Determines the Look-and-Feel of the Design? First: Context

Context
captures its aesthetics and functional look-and-feel

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Dimensions of Context
1. Function refers to the organization and accessibility of information
Section Breakdown is the way the site is organized into subcomponents Linking Structure enables users to move easily between sections Navigation Tools facilitate how the user moves through the site Speed is measured by the time needed to display a page on a users screen Reliability how often a site experiences downtime Platform Independence is measured by how well the website can run on multiple platforms, including old versions of Web browsers Media Accessibility the ability of a site to download to various media platforms

First: Context (contd)

2. Aesthetics refers to the visual characteristics of a site

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Color Scheme refers to the colors used throughout the site Visual Themes help to tell the story portrayed across the site

Context Classifications

Aesthetically Dominant: Emphasis is on the look-and-feel of the site.

This type of site makes heavy use of visual elements

Functionally Dominant: Emphasis is on the display of textual

information.
This type of site limits the visual design to a minimum

Integrated: Balance of form and function.

These sites have a clear and appealing theme that support the underlying graphics

Exhibit 5.3: Form vs. Function -The Design Context Frontier

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High
Aesthetically Dominant

Integrated

Frontier is gradually moving outward as technology advances

Low
Functionally Dominant

Low

High

FUNCTION

Exhibit 5.4: Aesthetically Dominant exampleKMGI.com

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Exhibit 5-5: Functional Dominant Brint.com

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Exhibit 5-6: Integrated Example Patagonia.com

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Second: Content Deciding What Information to Include

The Content of a website
refers to all the digital information on the site

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Evaluating Content
Offering Mix
Content of a site can include products, information, services, or a mix of these three

Appeal Mix
Company's value proposition is projected in the promotional and communications messages of a site

Multimedia Mix
Refers to the choices of media including text, audio, image, video and graphics

Timeliness Mix
information presented on a site is time-sensitive

Current Content
Highly time-sensitive information with very short shelf life

Reference Content
less time-sensitive information with longer shelf life

Exhibit 5-7: A Framework to Understand Content Classifications

Multiple
Superstore
NUMBER OF PRODUCT CATEGORIES

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Specialty Store
Category Killer

Single

Narrow

Broad

DEPTH OF PRODUCT LINE

Second: Content (contd)

Content Classifications
Product Dominant: Encompasses store sites that primarily sell physical goods
Superstore
One-stop shop offering a wide range of goods in multiple product categories

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Category Killer
Sites offering a comprehensive selection of products and services but only within a specific category

Specialty Store
Stores offering exceptional quality and exclusivity in single or multiple categories of products

Information Dominant: Encompasses store sites that focus heavily on information Service Dominant: Encompasses store sites that focus on the services offered, often for a fee

5-16 Exhibit 5-8: Category Killer Example1-16 PetSmart

Exhibit 5-9: Specialty Store Frontgate.com

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Exhibit 5-10: Information-Dominant ExampleFast Company

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Exhibit 5-11: Service Dominant ExamplePlasticsNet

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Third: Community

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Community includes a feeling of membership in a group along with a strong sense of involvement and shared common interests Five components determine the shape of online communities:
Characteristics Member Motivation Member Participation Member Benefits Interaction Tools

Characteristics
The more evolved the community the more likely it is to have these six characteristics
Cohesion- the community develops a group identity
Effectiveness- the group has impact on members lives Help- members feel comfortable asking for and receiving help from
other members

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Relationships- interaction between individuals leads to

friendships

Language- members develop a specialized language and/or

abbreviations with unique meaning within the community

Self-regulation- the group sets rules for its own interaction and
develops a system for policing itself

5-22 Exhibit 5-12: CommunitiesElements, 1-22 Types & Benefits

Why members are motivated to join the community

How members participate in the community

Community Characteristics Cohesion Effectiveness Help Relationships Language Self-regulation

Interaction Tools

Member Benefits
Need fulfillment Inclusion Mutual influence Shared experiences/ information

Community Classifications
Nonexistant- sites that have no community offer no
way for users to interact with one another, on either a one-to-one basis or one-to-many basis

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Limited- sites that offer features such as reading and

posting information, stories, or opinions

Strong- sites that offer interactive community functions

such as chat rooms and message boards

5-24 Exhibit 5-13: Limited Community 1-24 Ex. Gillette Womens Cancer Connection

Exhibit 5-14: Strong Community ExampleBolt.com

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Fourth: Customization Creating an Individualized Website

refers to a site's ability to tailor itself to each user or to be tailored by the user Dimensions of Customization
Personalization:
user initiates & manages the customization process

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Tailoring:
Software dynamically publishes unique versions of the site to address specific user's interests, habits & needs more appropriately

Fourth: Customization (Contd)

Commonly used customization features:
E-mail accounts
Users can send and receive e-mail from the site, using a free, unique e-mail address

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Content and layout configuration

Users can design their own homepage, within limits, by choosing background colors, layout design, and content sources

Storage
Users can store e-mail, URLs, favorite content, or items they want to buy

Agents
Computer programs can perform simple tasks upon request, such as notifying a user via e-mail when a product is in stock

Exhibit 5-15: Personalization by User ExampleMyLook.com

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Exhibit 5-16: Tailoring Example Amazon Homepage for Two Users

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Fifth: Communication Keeping in Touch with Users

refers to the dialogue between a site & its users Dimensions of Communication
Broadcast

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One-way information exchange from organization to user. can be in the form of mass mailing, FAQ, e-mail newsletters, content-update reminders and broadcast events

Interactive
Two-way communication between the organization and a user. can be in the form of e-commerce dialogue, customer service and user input

Fifth: Communication
Communication Archetypes
One-to-One, Non-Responding User
User receives personalized messages to address specific interests or needs without a need to respond

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One-to-One, Responding User

User responds to personalized messages sent by the site

One-to-Many, Non-Responding User

Site messages are announcements that users receive without needing to respond

One-to-Many, Responding User

Site messages are invitations to users to submit their comments and responses

5-32 1-32 Exhibit 5-17: One-to-One, Live Interaction ExampleLivePerson.com

Sixth: Connection Linking with Other Websites

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is the degree to which a given site is able to link to other sites Dimensions of Connection
Outside Links
Links that take the user completely outside the home site and into a third-party site

Framed Links
Links that take the user to a third-party site that open in the same browser window and that are framed by the home site in some way

Pop-Up Windows
Links that open up the new site in another browser window while the original website stays in the background

Outsourced Content
Content that comes from an outside supplier

Exhibit 5-18: Outsourced Content ExampleReal.com

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Sixth: Connections Classifications

Destination Site
Provides almost exclusively site-generated content with very few links to other sites

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Hub Site
Provides a combination of site-generated content and selective links to sites of related interests

Portal Site
Consists almost exclusively of links to a large number of other sites

Exhibit 5-19: Destination Site NYTimes.com

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5-37 Exhibit 5-20: Hub Example Industry 1-37 Central

Exhibit 5-21: Portal Site Example Yahoo

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Seventh: Commerce Enabling Financial Transactions

refers to the sale of information, products or services on the site. Dimensions of Commerce
Functional tools that are the commerce-enabling features of a website
Registration Shopping Cart Security Orders Through Affiliates Configuration Technology Order Tracking

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Credit-Card Approval
One-Click Shopping

Delivery Options

Seventh: Commerce (contd)

Commerce Classifications:
Low

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These websites have the ability to process transactions, but with few of the tools that enable e-commerce

Medium:
Some websites have no need for all the commerce activities and contain financial transactions as a necessary feature but not as their main purpose.

High
These websites are fully equipped with all or almost all the functional tools that enable e-commerce.

Exhibit 5-22: Map of 7Cs Framework

Context Content Community Customization Aesthetically dominant Product-dominant Nonexistent Generic Functionally dominant Informationdominant Limited Moderately customized Integrated

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Service- dominant Strong Highly customized One-to-one, responding user Portal High

Communication

One-toOne-to-many, many, nonrespondi responding ng user user Destination Low

One-to-one, nonrespondi ng user

Connection Commerce

Hub Medium

Exhibit 5-23: Foot Locker (www.footlocker.com)

Context
Aesthetically dominant Product-dominant Functionally dominant Information-dominant Integrated

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Content

Service-dominant

Community

Nonexistent

Limited

Strong

Customization

Generic One-to-many, nonresponding user Destination

Moderately customized
One-to-many, responding user Hub

Highly customized

Communication

One-to-one, nonresponding user

One-to-one, responding user

Connection

Portal

Commerce

Low

Medium

High

Exhibit 5-24: Cool Running

(www.coolrunning.com)
Context
Aesthetically dominant Productdominant Functionally Functionally dominant dominant Information Information-dominant dominant Integrated

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Content

Service-dominant

Community Customization

Nonexistent

Limited Moderately customized

Strong

Generic

Highl Highly Customized

Communication

One-to-many One-to-many, Nonresponding responding user user

One-to-one, nonresponding user

One-to-one Responding user

Connection
Commerce

Destination

Hub Hub

Portal

Low Low

Medium

High

Exhibit 5-25: MarketWatch.com (www.cbs.marketwatch.com)

Context
Content Community Customization
Aesthetically dominant Productdominant Nonexistent Functionally Dominant Information -dominant Limited Moderately customized One-tomany, responding user Hub

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Integrated

Service-dominant

Strong Strong

Generic

Highly customized

Communication

One-to-many Nonresponding user

One-to-one, nonresponding user

One-to-one, responding user

Connection

Strong Destination Low Low

Portal

Commerce

Medium

High

Exhibit 5-26: CBS MarketWatch.com Homepage

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