Driving business and saving money: the key in 2004 - Best practices: e-commerce

We hear that the economic turnaround has begun, and each of us needs to be in a position to drive our business and reach more customers than ever before. How do we reach more guests effectively and efficiently in this e-commerce era? Does a change in economic temperature mean that we don't worry about the old adage that "a penny saved is a penny earned?" How can each of us keep our bottom line strong? We believe that these questions are important elements of financial success in 2004.

In response to the first question, Accor has launched a Property Website Program that gives our Red Roof Inns, Studio 6 and Motel 6 franchisees a fast track to Internet marketing that is hassle-free and low cost. The new program allows entrepreneurs the opportunity to create property specific Web sites without needing Web design experience or training. The new program is aimed at helping franchisees drive bookings, increase revenue and build profit using the Internet. Site elements include customized property amenities, photos, features, local attractions and airports, and Web site links. The program was presented to the Accor Franchisee Advisory Councils before pre-release workshops held at the Accor convention in April 2003. Following the workshops, R.C. Patel, owner of Diplomat Hotels, and franchisee of all three Accor economy brands, raved, "This new program is very impressive with its ease of use and low cost."

Saving money is also top of mind for each of us. We have launched a franchise e-procurement program, which initiates an unparalleled rebate program to put money back into the hands of our franchisees. Through the company's new rebate program, franchisees who purchase goods, supplies and equipment using e-procurement or directly from any of Accor's suppliers, do so at the same prices offered to company-owned locations. In addition, any purchases from Accor's 108 approved suppliers will result in year-end rebates to the franchisees at the same rate as company-owned locations.

We believe that these two programs will propel our franchisees toward success in 2004.

Accor is a proud member of the International Franchise Association, American Association of Franchisees and Dealers and Founding Sponsor of AAHOA.

Hotel Web sites use third-party links to direct guests - News - E-commerce

NATIONAL REPORT -- Hotel companies increasingly are relying on third-party Web sites and services to help drive reservations traffic to the hotels' Web sites.

Many of these partnerships fall into the realm of destination information content offered to the hotel reservations site by the third-party provider. Examples of such content include special event calendars, restaurant reviews, mapping information and weather.

In terms of what the end user sees, the aggregation of destination information on hotel-branded sites is similar to the integration of restaurant reviews from CitySearch with many of the hotel information and booking pages on Expedia.com. IAC/InterActiveCorp. owns both sites.

But when it comes to uniting booking with e-commerce, lodging chain marketers would rather not depend on the third-party travel sites. Sensing that their most brand-loyal customers are more likely to go to hotel sites than to third-party Web addresses, marketers increasingly regard their own site's content aggregation efforts as crucial.

Del Ross, director of e-commerce services for InterContinental Hotels Group, said there's a direct relationship between the availability of such services for site visitors and the percentage of site visitors who make a reservation when they click on the company's site .

"These partnerships influence our demand and conversion rate," Ross said.

"Our philosophy is that we are trying to create an experience for people to shop and book travel," said Wendi Mazzucco, senior director of channel marketing for Cendant Corp.'s hotel group. "We know our own core competency, and we like to stay focused on our hotels' sites. But if we can give our [site] customers even more information, they are going to find our site even more valuable."

MapQuest, an Internet-based mapping service, is a key third-party partner on Cendant's brand-specific Web sites. For payments that Mazzucco would only describe as being in the millions of dollars per year, a "Map It" icon appears for each property listed on the page a prospective guest sees when he or she enters a query for a hotel in or near a city.

When the site visitor clicks that icon, a page with a MapQuest-drawn map, often with driving directions from the nearest airport, appears. For example, a search on Cendant's Days Inn site for hotels near Grand Junction, Colo., shows the Grand Junction Days Inn as one of the listings. The map page for that property describes the route from the local airport. If the customer regards the route to the hotel as a convenient one, he or she can start the booking process by clicking the reservations icon on the same map page.

"Our customers have told us that they want quick reservations, and they are open to receiving additional information of this kind," Mazzucco said.

Of course, many travelers don't base their booking decisions entirely on how easy the drive is to the hotel as much as what attractions and amenities are in the immediate area. Hotel chains have always been aware of this, and an array of third-party destination sites are happy to help provide this type of information.

Choice Hotels International provides destination information on www.hotelchoice.com, as well as its branded sites. Mary Beth Knight, v.p. of e-commerce for Choice, said that in addition to a new look and better site navigation, additional enhancements will include destination information from third-party providers. She said the site will offer an entire menu of content, including local sporting events, museums, attractions and restaurants. Weather conditions and forecasts for local areas also are likely to be added, also via an as-yet unnamed third-party partner site.

Choice already has a third-party mapping site partner, Microsoft's Vicinity.com. Vicinity also partners with Hilton Hotels Corp., Best Western International and Starwood Hotels & Resorts Worldwide.

As an example of how the information is delivered on the site, a prospective guest searching for a Clarion Inn in or near Seattle would see a search-results page that highlights the Clarion Inn Totem Lake in nearby Kirkland, Wash. Clicking the property's info/photos icon on the search results page would bring a pop-up page with a link to another page with a list of nearby restaurants and attractions.

"Location is a key in a booking decision," Knight said.

InterContinental takes the third-party model a step further by means of a partnership with online destination information publisher 10Best, (www.10best.com). The site's Virtual Concierge product is offered by IHG and on the Web sites of brands such as Doubletree, Hilton, Fairmont, Radisson and Omni.

"[10Best] has the information our customers want, so we marry our online offerings with theirs," said Ross, who described the relationship as a fee-based arrangement.

As an example, a customer making a reservation on the Web page for IHG's Staybridge Suites in Houston would see a page with a linked list of "Recommendations In The City." Supplied by 10Best, these links would include dining, cultural events, leisure, nightlife and shopping suggestions.

Double play: could sending a paper catalog to customers boost your e-commerce business?

WHETHER YOUR GOAL IS TO ENTICE customers to shop at your Web site more often or to combat stagnating sales, you could try boosting business with a decidedly traditional strategy: the catalog.

It's not a new trend per se, but those e-tailers taking the plunge are seeing real results. The idea is to increase the number of touch points you have with your customers so you can ultimately build more sales. It's common knowledge, after all, that people who shop in multiple channels are more valuable than single-channel shoppers.

Research conducted earlier this year by comScore Networks, for the U.S. Postal Service (USPS), found that a business doubles its chances of making an online sale by mailing a catalog. Other findings from "The Multi-Channel Catalog Study" include:

* Catalog recipients account for 22 percent of traffic to a catalog company's Web site and 37 percent of its e-commerce dollars.

* Catalog recipients make 16 percent more visits to that company's Web site than those who do not receive a catalog.

* Catalog recipients view 22 percent more pages and spend 15 percent more time at the Web site than those who do not receive a catalog.

* On average, the total amount spent on a Web site by a catalog recipient is $39, more than twice the $18 spent by noncatalog consumers.

Catalogs also work well as a channel for e-tailers because they can easily leverage the Web site's marketing, creative, infrastructure and fulfillment systems and repurpose them for a catalog. "They can use the same call center that's listed on the [toll-free] number for the Web site, for instance," says Dawn Brozeck, a senior analyst at Nielsen//NetRatings, a Web traffic anaylsis firm with head quarters in New York City.

Catalogs also reinforce an e-tailer's brand. Especially for growing businesses, they are a quick and easy way to add legitimacy to your company. An e-tailer with a multichannel presence appears as "more established" to consumers.

Taking the Plunge

Gift Services Inc. dba GiftTree (www. gifttree.com) is just one e-tailer that has made catalogs a key part of its marketing plan. Online since 1997, the Vancouver, Washington, online seller of gift baskets targeting the corporate market sent out its first catalog to 60,000 customers and prospects during last year's holiday season. According to Craig Bowen, 41, GiftTree's CEO and co-founder (with Esther Diez, also 41), catalogs are a necessary marketing tool for e-tailers. Catalogs keep e-tailers "top of mind" with customers and ultimately encourage those customers to come back for more.

"Our customers typically have purchased with our competition, and the company they purchase with next is the company that's in the right place at the right time," says Bowen, whose company had sales of $12 million last year. "It allows consumers to [shop for couches] at home, then [be] reminded about your company when they're leaning against theft kitchen counters--and then they place the order online" Without a catalog he warns, "They might forget about you altogether."

GiftTree decided to create and design its catalog in-house. Employees took photographs of GiftTree's products in the company's own photo studio. The company hired a printer to print and manufacture the catalogs, and then mailed the catalogs through the USPS.

Since the catalog was launched in tandem with other fliers it printed--and since GiftTree used in-house employees for the work--Bowen could not provide an exact figure for how much the whole project cost. However, taking on this kind of project is "definitely not cheap," Bowen says, adding that it can cost at least $100,000 once you factor in the costs of hiring an agency to produce it, in addition to printing, mailing and perhaps buying or renting a prospect list.

But for those who can afford it, a Web site and a catalog make the perfect marriage, says Bowen, who adds that launching the catalog was a logical channel for GiftTree to explore. The company's fulfillment system was already in place, ready to take orders. And GiftTree had already collected the names and addresses of customers to whom it could send catalogs.

Risks and Rewards

Considering all the work and expense inherent in such an endeavor, is launching a catalog really worth it? "Definitely," says Bowen. "We saw a lift in sales." In fact, GiftTree is already planning to send out a second holiday catalog this November.

"There's a reason people do catalogs," Bowen explains. "They work. If you make a very beautiful catalog, and it's got what [consumers] want in it when they see it, they are far more likely to order from you than if you didn't send them something."

In reality, not every e-taller will have the funds required to launch a full-fledged catalog. An affordable option for business owners on a budget is to send out postcards or brochures as a way to keep in contact with customers. "It's really just reminding your customers that they're important," Bowen says. "If you can't print a beautiful catalog, maybe it's a better idea to save your money and instead offer your customers a dollar-off postcard."

Making a seamless connection between in-store and online - E-commerce

Walgreens kicked off 2004 with more than 1.6 million unique visitors to its Web site during January, second only to Drugstore.com, with 11.9 million unique visitors. The retailers outpaced CVS.com and RiteAid.com, with a respective 923,000 and 515,000 unique visitors, according to comScore Media Metrix data.

Walgreens.com also received accolades from The Customer Respect Group for its online qualities in the areas of customer responsiveness, ease of use and consumer privacy.

Those qualities matter, said CRG president Roger Fairchild, because a user-friendly, easy-to-navigate and trustworthy site translates to the same feeling a customer gets when he or she walks into a bricks-and-mortar store and is met by a helpful and knowledgeable staff. It also translates to more online rings.

In addition, to capture an even larger online customer base, Walgreens is addressing specific consumer groups with a newly tailored online format.

As part of its ongoing effort to attract the growing number of Hispanic consumers, Walgreens became the first national pharmacy retailer to launch a Web site designed specifically for the Spanish-speaking population. Launched in August, WalgreensEspanol.com provides drug information, an online prescription refill form, a store locator and directions on how to use services on Walgreens.com. The site also redirects users to Walgreens.com for more information. While WalgreensEspaSol.com is a pared down version of the retailer's English-language Web site, Walgreens plans to add new online services based on user feedback.

In addition to its Spanish-language site, Walgreens also was the first pharmacy chain to fully integrate its online pharmacy with its retail locations, offering patients a chance to view and update their personal prescription history online. In 1998, the retailer began offering prescription refills online, which patients picked up at the store location where the prescription was most recently filled. Walgreens then launched its full-service online pharmacy in 1999, encompassing new prescriptions and refills for pick up at any Walgreens location or by mail. Walgreens later opened its full online drug store in 2000.

Last year, the retailer processed more than 18,500 online prescriptions per day, with more than 95 percent of patients picking them up at a store location, said Walgreens spokeswoman Carol Hively. The transaction gives Walgreens the chance to interact with customers at two points of purchase.

Walgreens' customers can learn more about Walgreens.com by picking up a store circular. The retailer promotes its site and Web-exclusive offerings through its weekly circulars. Walgreens' circular for the last week of February told customers to track their rebate earnings online by going to Walgreens.com/easysaver and clicking on Rebate Status. The circular also promoted the UpEasy Lifting Cushion, an exclusive Internet offer sale-priced at $80 from an original $99.99.

The ultimate message to consumers conveyed in the circular: Walgreens is there for them 24/7. "Make Walgreens your store. Online. Day or Night @ Walgreens.com," was touted.

That seamless integration from in-store to online retailer has helped propel Walgreens.com to the top.

A CRG study measuring retailers' performance from an online perspective found Walgreen Co. tied for third out of 52 Fortune 1,000 companies in the retail sector, beating out Amazon.com, Wal-Mart Stores and Kmart Corp.

The results affirmed Walgreens' e-commerce strategy to extend its products and services available at its more than 4,300 stores, while providing customers additional convenience and access to information. Transcending its bricks-and-mortar pharmacies, Walgreens.com gives patients direct control in managing their health care online and access to the same information their Walgreens' pharmacist holds.

Released in the fall, the study gave both Walgreens and CVS Corp. a customer respect index of 8.9 out of a possible 10. In comparison, Rite Aid Corp. rated an 8.5, Longs Drug Stores rated 6.4, and ShopKo Stores rated 5.4.

CRG based its scores on attributes that create the optimal online customer experience, including respect for privacy, valuation of customer data, a strong customer focus, open and honest policies, ease of navigation and a quick and thorough response to inquiries.

According Fairchild, Walgreens achieved a perfect 10 in the area of responsiveness. CRG's research team said Walgreens.com sent an auto-response, followed by a full response, to a question posed to a Walgreens pharmacist the same day the question was submitted. CRG said Walgreens' response was relevant to the question, provided detailed information on the topic and was fully personalized with a friendly and appropriate tone.

Walgreens.com also achieved a high score on ease of navigation. Its Web site was clear and easy to navigate, according to the study, and the contact form for customers to fill out was easy to use and quick to complete. The privacy policy also was easy to find with a clear link on each page, said Fairchild.

Taking the risk out of e-commerce - Insuretrust.com services - Company Profile

Rick Davis ensures that Internet integration won't be a liability for your company

At the relatively young age of 30, Rick Davis has just had reconstructive knee surgery and expects to have no less than three similar operations in the coming years, including both ankles and the other knee. Yet Davis could be considered healthy and in great shape. So why the surgeries? "I don't want to be 40 years old with aches, pains and nagging injuries slowing me down," says the former Stanford University football player. Such preemptive surgery could almost be considered a representation of his current profession--risk management.

Davis is the co-founder and strategic marketing and corporate development officer of Insuretrust.com, an Atlanta-based e-business risk management firm that focuses on companies whose operations rely on internal and external computer networks. "We have created a new space that combines the best elements of information security, consulting, risk management and insurance," explains Davis. "By combining these disciplines into a unified e-business approach, we effectively address all the critical exposures that affect e-business, the Internet and networked computer environments."

The very same electronic connections that allow us to conduct business and communicate with business partners can be compromised by hackers or unscrupulous employees. Insuretrust conducts full-scale analyses that identify the areas of risk in your business and helps to protect them. Surprisingly, even with the myriad technologies and points of entry that comprise most corporate networks, Davis says the most common security risks are related to human error and miscommunication. However, the risk of a security breach could be reduced if upper management paid careful attention to security issues. Here are the top three problems Insuretrust routinely addresses:

* Lack of a companywide security policy. Many companies don't tell users how to protect their information and how to use networked resources accordingly. This is an accident waiting to happen.

* Lack of executive sponsorship of security initiatives. Senior executives need to be an integral part of the security solution, which should also be a line item in the budget.

* Lack of integration between business decisions and IT decisions. In the e-business environment it is imperative that decisions are made based on both business and IT considerations. For example, if the marketing department wants to create a shared network with its business partner, it is essential to have an IT perspective to make sure all security and infrastructure considerations are addressed from the beginning.

Although internal breaches of security are still the most common type, there has been a dramatic rise in the number of successful "attacks" from the outside. Earlier this year Information Security magazine conducted a survey of over 700 companies that revealed a 91.6% increase in the number of companies suffering unauthorized access (hacking/cracking) intrusion between 1998 and 1999. "Companies conducting e-commerce suffer more frequent attacks than those that don't," says Andy Briney, editor in chief of Information Security. Fewer than 100 of the companies that suffered these invasions attributed a dollar amount to the attack--yet the total exceeded $23 million.

"Traditional insurance companies insure property losses and liabilities but not those that arise from e-commerce," says Davis, whose family has run Davis Insurance Agency for three generations. Ironically, he only joined the family business three years ago--when he stumbled upon this new industry. At the time, the Omaha, Nebraska, native was employed as a computer security and systems integration consultant. "One of my customers asked me who was responsible if the security safeguards I'd installed failed to stop an attack. I told him he was," recalls Davis.

At the customer's request Davis contacted the family firm to find out if there was an insurance policy that could cover this type of loss. The answer was no. By early 1997 Davis launched the Information Risk Management unit of the Davis Insurance Agency to capitalize on the opportunity. "Rick realized the opportunity a couple of years ago and the rest of the industry is only just catching on," says Kevin Field, a technology risk specialist with London-based Willis, a worldwide risk management firm. However, there was at least one other person in the country who was as far ahead of the crowd as Davis--Steve Haase. Haase, a 20-year insurance industry veteran, actually beat Davis to the punch by selling the first e-business security policy in 1997.

"As soon as I heard about that policy I gave Steve a call," says Davis, who contacted Atlanta-based Network Risk Management Services to discuss a possible partnership combining Davis' technical, Internet and underwriting experience with Haase's insurance policy expertise. "We were developing a new area and didn't have anyone from the technology field working with us," recalls Haase. "Rick calls me up out of nowhere and understands the whole market and was able to fill in the void in our planning and strategy."

Integration & Extension: Data Services Platform - Products.new - iPlanet Integration Server, B2B Edition from iPlanet E-Commerce Solutions - Software

The Sun-Netscape alliance, iPlanet E-Commerce Solutions, announces its integration platform incorporates SOAP, Java technology, and XML into a comprehensive solution. The platform includes iPlanet Integration Server, B2B Edition, iPlanet Integration Server, EAI Edition, and iPlanet Message Queue for Java, addressing a range of simple to sophisticated integration demands, while eliminating the need for restrictive proprietary languages.

The iPlanet Integration Server, EAI Edition, is an upgraded version of iPlanet Integration Server 2.1. The product includes Planet's scalable business process management engine and new SOAP support, enabling back-end data sources to be represented as Web services, which can then be leveraged by other organizations or applications.

The iPlanet Integration Server, B2B Edition joins two independent products, formerly known as iPlanet ECXpert and iPlanet TradingXpert, into a single product for business information exchange, including document routing and conversion.

Launched in June, iPlanet Message Queue for Java is an implementation of the Java Message Service application programming interface. This solution provides Web services developers with a messaging infrastructure to route messages between disparate applications and services.

The Planet Integration Server, B2B Edition is $1100,000 per CPU. The iPlanet Integration Server, EAI Edition starts at $40,000 per CPU. The iPlanet Message Queue for Java is priced at $4,000 per CPU. A developer version of Planet Message Queue for Java can be downloaded for free. The iPlanet integration platform supports the Solaris, Windows NT, and other platforms.