business. Main
objectives. Some
marketing. Many
Capability maturity model of e‑commerce adoption based on E‑consultancy (2008a) research
231
Chapter 5 Digital business strategy
Level
Strategy process
and performance
improvement
Structure: Location
of e‑commerce
Senior
management
buy‑in
Marketing
integration
Online marketing
focus
3 Centralised
management
Specific
Specific channel
objectives set.
Web analytics
capability not
integrated to give
unified reporting
of campaign
effectiveness
Centralised
Common platform
for content
management and
web analytics.
Preferred‑
supplier list of
digital agencies.
Centralised,
independent
e‑commerce
function, but with
some digital‑ specific
responsibilities by
country, product or
brand
Involved
Directly involved in
annual review and
ensures review
structure involving
senior managers
from Marketing,
IT, operations and
finance
Arm’s-length
Marketing and
e‑commerce
mainly work
together during
planning
process. Limited
review within
campaigns. Senior
e‑commerce
team‑ members
responsible for
encouraging
adoption of
digital marketing
throughout
organisation
Conversion
and customer
experience focus
Initiatives
for usability,
accessibility
and revision
of content
management
system (including
search engine
optimisation) are
common at this
stage
4 Decentralised
operations
Refined
Close cooperation
between
e‑commerce and
marketing. Targets
and performance
reviewed monthly.
Towards unified
reporting. Project
debriefs
Decentralised Digital
marketing skills
more developed
in business with
integration of
e‑commerce
into planning
and execution at
business or country
level. E‑retailers
commonly adopt
direct‑ channel
organisation of which
e‑commerce is one
channel. Online
channel profit and
loss accountability
sometimes
controlled by
businesses or
brands, but with
central budget
for continuous
e‑communications
spend (search,
affiliates,
e‑communications)
Driving
Performance
Involved in review
at least monthly
Partnership
Marketing and
e‑commerce work
closely together
through year.
Digital media
spend starts to
reflect importance
of online channels
to business and
consumers
Retention focus
Initiatives
on analysis
of customer
purchase
and response
behaviour and
implementation
of well‑ defined
touch strategies
with emphasis on
email marketing.
Loyalty drivers
well known and
managed
5 Integrated
and optimised
Multichannel
process
The interactions
and financial
contribution of
different channels
are well
Integrated
Majority of digital
skills within
business and
e‑commerce
team commonly
positioned
Integral
Less frequent
in‑depth
involvement
required.
Annual planning
and six‑ monthly
Complete
Marketing has
full complement
of digital marketing
skills, but calls
on specialist
resource from
Optimisation
focus
Initiatives
to improve
acquisition,
conversion and
retention
Table 5.11
Continued
M05_CHAF6542_06_SE_C05.indd 231
7/23/14 11:16 AM
232
Part 2 Strategy and applications
Level
Strategy process
and performance
improvement
Structure: Location
of e‑commerce
Senior
management
buy‑in
Marketing
integration
Online marketing
focus
understood
and resourced
and improved
accordingly
within marketing or
direct
sales operation.
‘ Front‑ end’ systems
development skills
typically retained in
e‑commerce team
or quarterly
review
agencies or central
e‑commerce
resource as
required. Online
potential not
constrained
by traditional
budgeting
processes
according to
developments in
access platform
and customer
experience
technologies.
May use
temporary
multidisciplinary
team to drive
performance
Table 5.11
Continued
●
Structure. Location of e-commerce and the technological capabilities through the soft -
ware, hardware infrastructure used and staff skills.
●
Senior management buy-in. Digital business strategies are transformational, so require
senior management sponsorship.
●
Marketing integration. We have stressed the importance of integrated customer and part-
ner communications through right- channelling. Staff members responsible for technol-
ogy and marketing need to work together more closely to achieve this.
●
Online marketing focus. Strategic initiatives will focus on the three core activities of cus-
tomer acquisition (attracting site visitors), conversion (generating leads and sales) and
retention (encouraging continued use of digital channels).
●
Partnering with other organisations. Some services will be best delivered through partner-
ing with other companies.
Within a business there are many issues for changing internal capabilities; these options are
considered in more depth in Chapter 10 , ‘Change management’.
Strategy implementation
Strategy implementation
includes all tactics used to achieve strategic objectives. The main
tactics and actions required are summarised in Figure 5.21 . These actions are described in
more detail in the remainder of Part 2 and in Part 3 , as indicated in the figure.
Chapter 10 focusses on approaches to managing the change associated with digital busi-
ness implementation. Figure 10.2 summarises different implementation marketing activities
that need to be completed by an online retailer structured according to customer acquisition,
conversion and retention activities.
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