You want to upsell, you want them to buy more from you.
You also want to cross sell
Internet business model
Direct response medium
critical ___ element
Customer lifetime value
Test
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Last time, What are different business models?
Amazon, what is it?
Business Model
• Traffic agregator (what do you see? you just see books? whats on the toolbar? everything!) They want your eyeballs!
• Their business model is an aggregator
commission associates, Adverising
Times – information , they PROVIDE CONTENT, they are a CONTENT provider, Subscription
there’s a difference between a revenue model and a business model. Subscription.
The more information you have, the more opportunity.
how to make additional revenue sources?
THE BUSINESS MODELS chart here.
How does it capture data?
information intense, it has involvement,
what’s a direct response bottom line, a call to action.
whats the internet provide you when you log on?
Information based, information
How come you stay on for hours, some sort of involvement in the process, some sort of process.
Anything you want you can get, its interactive, information intense, immediate, and your involvement.
customers: you aquire them, you ___, and then you retain them
blank blank blank
TESTIMONIALS, if it works for me it works for you.
Thinking about cars.
Broadly general,
Aston marting to a camery
Country where its made, income , they can be criteria
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Media a big player in marketing at what you get?
is media robust?
Back office is critical, any 1 of these fail, lets say you get the wrong audience, you don’t have a n invitation offer, something thats compelling and you cant deliver, you are in trouble in the process.
when people log on your ste, you want them to stay on.
if they are on your site, they are not on someone else site.
their involvement goes, up, it says your content is the best deal in town.
Sales leads, stickiness, targeting could be community, like curing cancer
think of differetn landing pages, what is a landing page? a home page.
______
Let’s see!
were going to see this over and over again,
supply chain, etc front end black end.
CLV
customer lifetimes value, loyalty, brand recognition
It’s cheaper to keep a customer than to find new ones, 4 to 5 times more.
omce you get a customer, you want to keep the, you want to satisfy them, customer service
base case sceneraio, how you would increase this customer retention, how much can you get by making them happy.
a trusted company that you believe that you continally buy products from, P&J does a good job.
Those re key concepts that you need.
Something to actor in, thats a very important conept.
Switching costs
email address, internet providers,
trustworthiness calculated over time.
it becomes a business model, because of the rating process.
So switching costs are _____
if you work through the calculations, theres a supermarket example, 50 weeks, not 52 weeks.
It’s imoirtatn you know general concept.
__
what the dfference betweena test and market research? what are the things ud like to do in an online testif you are an advertiser, maybe price color banner add, conceptuallly what do you have to do? one banner add vs the other, you just have to have 2 products, who your targeting, target market.
the offer, the email list, the service and support, the media , the creative exe… easier,
product research tells you waht peple are thinking, testing gets behind what people do.
if you engage in the practical statistical stuff, blah blah, ou have info at the end of the day, yes absolutely.
can you give one coupon to one set of customers, look at what they do over a two onth period. stimulate increase,
focus on one thing, theres a chart you should look at,
TESTING PRCESS CHART 4-4