Creating a Winning E-Business Second Edition Taking Advantage of Affiliate Marketing & Designing...

Creating a Winning E-BusinessSecond Edition

Taking Advantage of Affiliate Marketing&

Designing Your Web Site

Chapter 7 & 8

Creating a Winning E-Business Second Edition, Chapter 7

2

Online AffiliateMarketing Programs

A revenue-sharing approach to marketing and promoting an e-business– Also called associate programs or

pay-for-performance programs– Merchant or advertiser operates the program– Affiliate or publisher participates in the

program• Marketing tool for merchant• Revenue source for affiliate

Require custom links from affiliate site to merchant site

Creating a Winning E-Business Second Edition, Chapter 7

3

Online Affiliate Marketing Programs

(continued) Pay-per-click (cost-per-click) program

– Merchant pays affiliate a set fee for each click-through from affiliate site• No action at merchant site is required

Pay-per-lead (cost-per-lead) program– Merchant pays affiliate a set fee for each

click-through that results in action• Make a purchase• Complete a form or take a survey

Creating a Winning E-Business Second Edition, Chapter 7

4

Online Affiliate Marketing Programs

(continued) Pay-per-sale (cost-per-sale) program

– Merchant pays affiliate a fee or commission on a sale that results from a click-through

Thousands of diverse e-businesses operate affiliate programs– Amazon.com– Dell– 1-800-FLOWERS.COM– Rackspace Managed Hosting

Creating a Winning E-Business Second Edition, Chapter 7

5

Online Affiliate Marketing Programs

(continued)

Creating a Winning E-Business Second Edition, Chapter 7

6

Online Affiliate Marketing Programs

(continued)

Creating a Winning E-Business Second Edition, Chapter 7

7

Online Affiliate Marketing Programs

(continued) Advantages to merchant

– Tie marketing effort directly to sales– Pay only for results

Advantages to affiliate– Additional source of revenue for affiliate

who also sells products/services– Primary source of revenue for affiliate who

offers entertainment or information

Creating a Winning E-Business Second Edition, Chapter 7

8

Online Affiliate Marketing Programs

(continued) Participating in an affiliate program

– Select the program carefully to ensure a good “fit”

– Understand the terms of the affiliate agreement

– Add custom links to merchant’s site from affiliate Web pages

– Build traffic at affiliate site to increase click-throughs to merchant site

Creating a Winning E-Business Second Edition, Chapter 7

9

Online Affiliate Marketing Programs

(continued) Selecting an affiliate program

– Make certain affiliate site visitors will be interested in merchant’s products/services

– Learn about merchant• Type of products/services• Easy shopping experience• Customer support• Reputation in the marketplace

– Look for competitive fees/commissions

Creating a Winning E-Business Second Edition, Chapter 7

10

Online Affiliate Marketing Programs

(continued) Affiliate agreement defines program terms

– Types of Web sites merchant approves– Guidelines for linking– Schedule of fees and commissions– Terms of usage of merchant logo and name

Creating a Winning E-Business Second Edition, Chapter 7

11

Online Affiliate Marketing Programs

(continued) Affiliate agreement defines program terms

(continued)– Restrictions on type of content at affiliate

site– Restrictions on marketing tools an affiliate

can use– Liability and other legal disclaimers– Dispute resolution and termination

requirements

Creating a Winning E-Business Second Edition, Chapter 7

12

Affiliate Tracking Systems

Allow merchant to control how it credits click-throughs

Monitor window of time in which affiliate can get credit for a click-through

Record and store affiliate information Provide commission/fee reports

Creating a Winning E-Business Second Edition, Chapter 7

13

Affiliate Tracking Systems (continued)

Creating a Winning E-Business Second Edition, Chapter 7

14

Affiliate Tracking Systems (continued)

Affiliate management networks– Third-party entities

• Recruit affiliates• Manage affiliate registration process• Track click-throughs• Credit affiliates with click-throughs• Arrange for commission/fee reporting and

payment

Creating a Winning E-Business Second Edition, Chapter 7

15

Affiliate Tracking Systems (continued)

Creating a Winning E-Business Second Edition, Chapter 7

16

Affiliate Tracking Systems (continued)

Well-established affiliate management networks– Commission Junction– LinkShare

Creating a Winning E-Business Second Edition, Chapter 7

17

Affiliate Tracking Systems (continued)

Creating a Winning E-Business Second Edition, Chapter 7

18

Affiliate Tracking Systems (continued)

Affiliate tracking technologies– Custom links containing affiliate

information or affiliate and merchant information

– Tracking cookies– Third-party tracking software– Application service provider tracking

service

Creating a Winning E-Business Second Edition, Chapter 7

19

Affiliate Tracking Systems (continued)

Creating a Winning E-Business Second Edition, Chapter 7

20

Affiliate Tracking Systems (continued)

Creating a Winning E-Business Second Edition, Chapter 7

21

Affiliate Marketing Risksand Challenges

Unethical affiliates– Cookie stuffing

• Multiple cookies placed on visitor’s hard drive during a single visit to affiliate site

– Parasiteware• Redirects affiliate links• Replaces content of existing tracking

cookies

Creating a Winning E-Business Second Edition, Chapter 7

22

Affiliate Marketing Risksand Challenges

(continued) Unethical affiliates (continued)

– Spammers• Merchant is responsible if affiliates use spam

to promote sites

Negative perception of tracking cookies– Many consumers install and use blocking

software• Block tracking cookies• Delete tracking cookies

Creating a Winning E-Business Second Edition, Chapter 7

23

Chapter Summary

Affiliate marketing is a revenue-sharing approach to promoting an e-business’s products and services– Marketing tool for merchant– Source of revenue for affiliate

Affiliate programs– Pay-per-click (cost-per-click)– Pay-per-lead (cost-per-lead)– Pay-per-sale (cost-per-sale)

Creating a Winning E-Business Second Edition, Chapter 7

24

Chapter Summary(continued)

Affiliate program should– Fit with affiliate’s products and services– Fit with Web site content

Affiliate agreement defines the terms of an affiliate program

Coded URLs and tracking cookies are used to track click-throughs

Creating a Winning E-Business Second Edition, Chapter 7

25

Chapter Summary(continued)

Affiliate management network– Recruits affiliates– Manages registration process– Tracks click-throughs– Credits referral fees and commissions to

affiliate Risks and challenges

– Unethical affiliates (cookie stuffing, parasiteware)

– Negative perception of tracking cookies

Creating a Winning E-Business

Second Edition

Designing Your Web SiteChapter 8

Creating a Winning E-Business Second Edition, Chapter 7

27

Web Site Planning Process

Identify the site’s business objectives:– Selling products or services– Educating consumers– Providing technical support– Collecting information from visitors– Offering a virtual community to customers– Directing consumers to other useful sites– Recruiting talented employees

Creating a Winning E-Business Second Edition, Chapter 7

28

Web Site Planning Process (continued)

Primary Goals: – Understand who will visit the site– Understand what visitors will do at the site

• Primary audience consists of the targeted customers identified in business plan

– Secondary audiences» Vendors» Strategic partners» Investors» General public

Creating a Winning E-Business Second Edition, Chapter 7

29

Web Site Planning Process (primary continued)

Design the site to accommodate the most common technological constraints– Experienced or novice users– Browser and version commonly used– Internet connection speeds– Screen resolutions used

• Fixed-width pages• Pages that resize with the browser window

Creating a Winning E-Business Second Edition, Chapter 7

30

Web Site Organization (primary continued)

Home page should answer basic visitor questions:– Who are you?– What do you do?– Where can I find what I want or need?– Why should I be interested in your products

or services?

Creating a Winning E-Business Second Edition, Chapter 7

31

Web Site Organization

Secondary Goals/Pages:– Customer login page– Products or services pages– “Shopping cart” page– Shipping and return policy pages– Customer support pages– Contact information pages– “About Us” pages

Creating a Winning E-Business Second Edition, Chapter 7

32

Web Site Organization

Secondary pages (continued)– Privacy policy and acceptable use pages– Frequently asked questions (FAQ) pages– Employment opportunities pages– “What’s New?” pages– Customer stories or case studies pages– Affiliate program pages– Help pages

Creating a Winning E-Business Second Edition, Chapter 7

33

Web Site Organization (continued)

Pure hierarchical structure– Similar to business organizational chart– Information is organized in levels– Home page at Level 1 (top-level)– Main topic pages at Level 2– Additional details about main topics at

remaining levels

Creating a Winning E-Business Second Edition, Chapter 7

34

Web Site Organization (continued)

Mixed hierarchical structure– Combines structured organization with

cross-linked pages

Creating a Winning E-Business Second Edition, Chapter 7

35

Web Site Organization (continued)

Site organization– Should enable visitors to find actionable

content quickly and easily– Be neither too flat nor too deep (7+/- 2)– Logical and intuitive

Avoid a structure that is either too flat or too deep (7+/- 2)– Structure that is too flat is uninteresting– Structure that is too deep is difficult to

navigate

Creating a Winning E-Business Second Edition, Chapter 7

36

Web Site Organization (continued)

Web site storyboarding / Blueprinting & wireframing– Used to test a Web site organizational plan– Manual mock-up of site’s organization

• Index cards, sticky notes, sheets of paper represent individual Web pages

• Use push pins or tape to fasten cards, notes, of sheets of paper to white board or corkboard

• Create connecting lines indicating links

– Look for illogical links, orphan pages, missing pages

Creating a Winning E-Business Second Edition, Chapter 7

37

Useful and AttractiveWeb Pages

Web accessibility – Designing Web pages so that Web resources are available to people with disabilities, very important issue

W3C guidelines for accessibility– Auditory content (speakable web) is

supported by alternative content– Color alone should not indicate a link– Adequate contrast for background/foreground

colors, best colors for e-commerce have been found to be white and grey

Creating a Winning E-Business Second Edition, Chapter 7

38

Useful and AttractiveWeb Pages (continued)

W3C guidelines for accessibility (continued)– Simply worded text– Movement, scrolling, and blinks can be

turned off without loss of information or navigation

– Navigational links are clear and consistent– Page content is consistent across all pages– “CRAP” - contrast , repetition, alignment &

proximity

Creating a Winning E-Business Second Edition, Chapter 7

39

Useful and AttractiveWeb Pages (continued)

Navigational elements (internal links); good global and local navigation– Embedded text links– Clickable table of contents and top-of-page

links, guides– Navigation tabs (Amazon)– Breadcrumb trail– Site map

Creating a Winning E-Business Second Edition, Chapter 7

40

Useful and AttractiveWeb Pages (continued)

Embedded text links (llbean; ems; backcountry; rei )

– Link positioned inside a paragraph– Text in link should clearly describe what

page visitors will see

Creating a Winning E-Business Second Edition, Chapter 7

41

Useful and AttractiveWeb Pages (continued)

Breadcrumb trail (Amazon is master)– Hierarchical navigational outline– Provides visitor with feedback on path

taken to current page– Use in conjunction with other navigational

elements

Creating a Winning E-Business Second Edition, Chapter 7

42

Useful and AttractiveWeb Pages (continued)

Site map– Web page that shows a summary of all the

linked pages at the site Rollover links

– Hidden links that appear when mouse is “rolled over” an animated image

– Avoid rollover links

Creating a Winning E-Business Second Edition, Chapter 7

43

Useful and AttractiveWeb Pages (continued)

Page layout / Gridded System– Fixed-width pages fit in a maximized

browser window for a specific screen resolution

– Liquid design creates pages that size with the browser window• Use tables (arrangement of columns and

rows)• Use CSS (cascading style sheets)

Creating a Winning E-Business Second Edition, Chapter 7

44

Useful and AttractiveWeb Pages (continued)

Writing for the Web– Use simple, direct language– Avoid industry jargon– Use bulleted and numbered lists– Use dark text color on light background– Use a familiar font– Use at least a 12-point equivalent font– Check spelling and grammar, and

proofread

Creating a Winning E-Business Second Edition, Chapter 7

45

Useful and AttractiveWeb Pages (continued)

Choose color scheme carefully Use images, audio, and video sparingly

and only when they support the Web site message

Avoid background images Add alternative text to image links Add related text links to support image

links

Creating a Winning E-Business Second Edition, Chapter 7

46

Web Design Outsourcing

Carefully assess costs of in-house Web design and development compared to outsourcing costs

Outsourcing benefits– May save time and money– Provides greater access to experienced

specialists familiar with current best practices and trends

– May provide access to usability analysis

Creating a Winning E-Business Second Edition, Chapter 7

47

Chapter Summary

Begin the Web site and page design process by determining the site’s business objectives and its targeted audiences’ wants and needs

Make sure that the home page answers basic visitor questions– Who? – What? – Where?– Why?

Creating a Winning E-Business Second Edition, Chapter 7

48

Chapter Summary(continued)

Determine the secondary pages needed in addition to the home page

Organize the pages at the site in a logical and intuitive order using the storyboarding process

Follow the W3C guidelines for Web accessibility

Pay attention to de facto standards or guidelines for Web usability

Creating a Winning E-Business Second Edition, Chapter 7

49

Chapter Summary(continued)

Compare the costs, advantages, and disadvantages of designing and developing the Web site in-house versus outsourcing the design and development process