tag:blogger.com,1999:blog-32202893.post7250496428943991828..comments2023-10-18T08:32:17.510-07:00Comments on Kevin Hillstrom: MineThatData: The Role Of A Website In A Website-Only BusinessUnknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-32202893.post-1561736930171295832007-04-10T06:50:00.000-07:002007-04-10T06:50:00.000-07:00It's a very good article I understand the business...It's a very good article I understand the business strategy is more useful to people are you want to know this information visit the site <A HERF: HTTP://WWW.IDEACENTER.COM/>business strategy</A>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32202893.post-57798312614938701912007-04-08T21:14:00.000-07:002007-04-08T21:14:00.000-07:00I recall being in meetings at my last employer ---...I recall being in meetings at my last employer --- I would use Macy's as a comparison to Zappos, since folks were a bit more objective when I did that than when we discussed our company verses Zappos.<BR/><BR/>I would take a $112 pair of boots that had free shipping, no sales tax, and free returns, and compare them with the same $109 pair of boots at Macy's that would cost $16.95 to ship, would arrive in a week, and would have $10 of sales tax.<BR/><BR/>At $112 verses $136 at Macy's Online ($117 at a Macy's Store) , I'd ask my co-workers which option they would choose.<BR/><BR/>About half would choose the store. Almost nobody would pick Macy's online. About half would pick Zappos.<BR/><BR/>This, to me, is the biggest challenge multichannel retailers face. The in-store experience is a huge advantage. But online (and in catalog advertising), unless the multichannel retailer can execute like Zappos, online growth may eventually stall.<BR/><BR/>Ray / Ron / Alan --- thanks for your comments!MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-59621933830177170482007-04-08T20:42:00.000-07:002007-04-08T20:42:00.000-07:00Zappos is successful because they (in no particula...Zappos is successful because they (in no particular order) have great service (bizrate ratings), low prices, free shipping, and (so critical for buying shoes through the mail) free return shipping.<BR/><BR/>I don't see Zappo's success as uniquely due to the web (save for the selection breadth) or uniquely due to single channel. (As opposed to, say, Netflix, which simply couldn't have existed preweb).<BR/><BR/>Zappos' success (in terms of revenue and growth, not commenting on their profitability) seems pretty simple: <B>Zappos offers a better value proposition to their customers</B>. Execute that strategy day in and day out, maintain service levels, keep prices low, and $500mil top line in under 10 years makes sense. <BR/><BR/>-- Alan<BR/><BR/>(disclosure: Zappos customer)rimm-kaufmanhttps://www.blogger.com/profile/11537242246745655184noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-58888035318340285362007-04-08T09:40:00.000-07:002007-04-08T09:40:00.000-07:00I had several discussions with folks at the NEMOA ...I had several discussions with folks at the NEMOA conference about the point you bring up.<BR/><BR/>Down the road, there will be a better distinction between the advertising channel (catalog, e-mail, search, portals, affiliates) and the order-taking channel (retail, telephone, online).<BR/><BR/>In that world, Zappos is not considered a single-channel or web-only business.MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-73679172920301033682007-04-08T08:19:00.000-07:002007-04-08T08:19:00.000-07:00Don't mean to quibble with you guys, but.... Zappo...Don't mean to quibble with you guys, but.... Zappos is not a "web-only business".<BR/><BR/>There's a 24x7 toll-free number advertised right on their home. <BR/><BR/>That makes at least 2 channels that customers can reach them through.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32202893.post-10489688037566071692007-04-06T08:13:00.000-07:002007-04-06T08:13:00.000-07:00Well said, Ray. Thanks!Well said, Ray. Thanks!MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-51485538484973862002007-04-06T07:50:00.000-07:002007-04-06T07:50:00.000-07:00Zappos success clearly shows that a web-only busin...Zappos success clearly shows that a web-only business is viable, however I don't think this indicates that the catalog is dead.<BR/><BR/>Zappos could likely increase revenue (and perhaps turn a profit) by smartly sending catalogs to boost retention or acquire new web customers. The catalog may not be a 104 page index of products, but rather a small, timely, personalized catalog. <BR/><BR/>Many of today's MC firms tend to see this issue from the opposite perspective. Instead of looking to add catalog's where needed as an acquisition boost or retention driver for web customers, we spend hours creating rules of how web dollars should flow back to a specific catalog for the supposed catalog customers who've "chosen to place their order online."<BR/><BR/>The distinction between web as an order channel and as a store needs to be recognized. Instead of moving web revenue to the catalog base, we are moving towards the web being "the new base" and catalog being a marketing vehicle.<BR/><BR/>Zappos shows that a single channel brand can work - but to me the real learning is understanding that inside all of our businesses there exists a 'Zappos Component,' that is web customers who don't need a catalog. Find them, save ad cost, reinvest the advertising $ into more promising vehicles, and watch sales grow. Its the new school of MC marketing!Anonymousnoreply@blogger.com