In this model, the company is offering a service to
customers through their web site. This could include services of graphic
designers, marketing companies, home furnishing services like carpeting or even
financial transactions like the buying and selling of stocks. There is
sometimes crossover with the Advertising model if a website is offering a tool
as a free service and profiting from web advertising revenues but for the sake of
this information.
eCommerce Service companies can come in a variety of shapes
and sizes. For example local businesses in your area could fit into this model
as they use their online presence to draw local web traffic, book appointments
or even to complete transactions.
These sites can be very text heavy, to achieve the listings
in the Search Engines they need, or they may be interactive, offering a tool to
plan the layout and décor of your home. They can be large or small, like your
local service business web presence which is mainly there to draw traffic to
their physical service location.
http://www.freecreditreport.com/:
FreeCreditReport.com is
an excellent example of a service provider web site. They gather the
credit scores from all three agencies and put them in one place, create a
usable analysis of that information and provide other tools and services
to protect or improve your credit.
The site even goes one better and
simultaneously offers space to financial and loan company advertisers so they
make money from subscribers and advertisers. This service provider actually
offers the service online and you can access the information immediately upon
payment.
The lines here get a bit blurry,
because in reality, their reports are a product that they sell, but because
they are not necessarily shipping you any goods, we are identifying them as an
eCommerce service provider.
http://www.seo.com/
This is a great example
of a straight up service provider website. They offer SEO services to
companies all over the web. The site is simple and content rich,
explaining their offering resources and finally, their call to action is
to Request a Proposal.
They use their website to draw traffic into the
business, which is physically located in one location but can service
companies nation and even potentially worldwide.
The site is rich in text and
information offering useful resources, but it is not cluttered or weighed down
with anything other than the simple call to action. Their services and
transactions are conducted offline.
http://www.edmunds.com/
Edmunds.com is a fantastic
informational resource and service provider for car owners and buyers.
They offer the ability to find new and used cars in your area and they
offer end user reviews and information about makes, models and safety.
They have an interesting combination of information and advertising as well as services for finding the vehicle, finding insurance and finding a car loan. Edmunds.com also has a booming virtual community full of enthusiasts that chat over makes, models and features.
Edmunds is a fabulous hybrid example because they truly use every revenue stream available but all in the name of creating a positive user experience.
GoDaddy.com is a hosting
service provider - their product is URL and hosting for websites. Their
website is not purely informational in relation to their service because
you can also complete transactions and manage your domains and even your
website through their portal.
This is another good example, like
FreeCreditReport.com of a service provider who has to have all of the
functionality of an e-tailer eCommerce business model but who is truly
providing a service rather than a physical item.
Like FreeCreditReport.com, Edmunds
offers valuable consumer information as a service provider, but they have
intelligently incorporated not only advertising but partnerships with related
service providers of car loans and insurance - not to mention the car
dealerships that send Edmunds information about what cars they have on hand.
Supply Chain
Management - Tasks necessary to obtain, move, transport, process, and
deliver goods from vendors, through manufacturing to the final customer.
Supply chain management in the service website can be very
much like that in the advertising model. If the service is information, the
supply must be on tap at all times. This means that any technical feeds, news
feeds, RSS Feeds, content production or other information resources must be
maintained at all times so that the reader or customer can get up to the minute
information. Edmunds.com is the best example of this. They need constant
updates from car dealerships as to which vehicles are available and as they
have honed their own search functionality they have added to and customized the
information they need from the dealers. Likewise they have relationships with
insurance companies from whom they need specific information and they have car
loan companies that need to supply information as well.
Edmunds.com also needs
to make sure the subjective or review content they provide is up to par. In
this case, all of these various sources of information are the "supply" that
must be maintained.
From a technical standpoint,
you'll need to ensure/consider that you have:
- A standard feed technology
into which dealers and providers and submit information that will be
accurate and will meet users needs.
- Content Management
Solution to manage user reviews and content provided by the website.
- Advertiser tracking
software
- Accounting program to
manage financial partnerships
- Consumer
feedback tool
If the service is the product, like GoDaddy.com, the supply
is actually more complicated. GoDaddy.com has to manage the domains that its
customers have purchased. They have to maintain not only the website, but the
portal that allows customers to manage their domains and the servers necessary
to support other websites. They have to maintain a large customer service
organization and information relating on site usage for beginners and advanced
users. They also have to maintain the search functionality to help users
determine the availability of a particular domain and they need to accept user
and customer feedback and constantly improve the site's functionality. As
GoDaddy has grown, they have also added services relating to their domain
purchasing clientele including marketing tools, eCommerce and merchant based
tools, domain auctions and more. In this case, GoDaddy.com must maintain the
supply chain on all of these services, whether it be the information relating
to the availability of domain names or the services themselves, email
availability, the speed of the site overall to handle the traffic of all of their
users and website managers, the human element to ensure quick turnaround of
service based customers and they are constantly striving to add more.
From a technical standpoint,
you'll need to ensure/consider that you have:
- Robust Database technology
- Robust hardware investment
- Integrated customer
service management, accounting, marketing and end user account management
functionality
- Fast and efficient web
technology that is scalable to meet the needs
- Lead and feedback
submission tools to physical staff
- Email marketing functions
tied into the database for automated update and notifications
- Shopping cart
functionality and credit card processing
- Robust site security
- Advertiser/Reseller
Management Program
Product and Process
Design Management - Tasks required in the design and development of
products and processes used in both manufacturing and service applications.
Developing the product and process related behind these
Service related sites can be simple and can be incredibly complex. In a site
like Edmunds.com they have designed the site in simple sections. You can look
for new cars, certified cars, used cars and then you can access information
like Car Reviews, Tips and Advice and then you can access service providers in
Insurance and Finance and you can access the user community or forum.
The basic user process could be: select make/models to
research and compare > assess costs > assess consumer satisfaction and
reviews > review financing options and insurance costs > make informed
decision > share information with other consumers.
To that end, they have their "product" offerings designed to
help people along in that process while exposing them to partners, advertisers
and building trust with impartial reviews from professionals and consumers.
They also effectively cross link their "product offerings" but each can stand
on its own.
The one consistent theme is credibility - so that wherever
you see an advertiser or a partner, you are also seeing general consumer
information that will help you make an informed decision. They have designed
the content and the site around this credibility.
We could group these into various "product" offerings:
1) Search:
for New Cars, Certified Cars, Used Cars
a) You
can find a car near you and identify various dealerships quickly.
b) Design/Process
of search behavior. Edmunds.com offers browsing by category or by make and it
offers additional potential search initiators like "2007 Consumers Most
Wanted," "2008 Lowest True Cost to Own," "More Best Car Awards" to help
consumers. Once you have identified the make(s) and model(s) of the cars you
are considering, Edmunds.com is already prepared with tools to help you further
research your decision.
c) Edmunds.com
offers useful tools relating to price quotes with and without options, warranty
information, car comparison tools and information about incentives and rebates.
They link to resource articles about road tests and new model reviews as well
so that a consumer can look at a vehicle, consider the pricing and options,
read reviews and find the best deal possible, all before setting foot in a
dealership. In this sense, they offer you the tool to look at and identify
makes and models, they then offer a tool to find them in your area and then
they offer you additional information critical to your decision making process.
d) Edmunds.com
identified the process a car buyer does/should go through and they created a
series of tools, information and processes to support that.
2) Access
Information: Car Reviews, Tips & Advice
a) This
section is designed for getting even more information about a car in which you
are interested. There are both Edmunds.com generated car reviews and consumer
reviews as well as Buying Guides, Best Car Lists, Photos, Road Tests and more. Again,
this is designed with the consumer in mind, whether they want "best car lists"
or visual information or information about how the car drives. They also build
credibility by hosting consumer reviews from real people as well.
b) Edmunds
understands that consumers come at information and the initial part of the
buying decision from many different angles. This section is designed to be
consistent with the New Cars and Used Cars sections in that it is organized by
Vehicle Type, Price and Feature and then you can look at makes and models.
c) Edmunds
has also designed information specific to demographic groups. There are guides
about eco-friendly cars, young drivers, women and family drivers. The content
served up is both generic and niche specific, thereby serving their huge
audience (car drivers) effectively.
d) Tips
& Advice offers good generic questions and quick pieces of information to
help car buyers. "10 Steps to Finding the Right Car For You" and "Spotting a
Good Lease" help with specific topics and again, help consumers to wade through
the glut of options in the industry and the industry hype to find the vehicle
right for their circumstance.
3) Service
Providers and Information: Insurance and Finance
a) The
Insurance and Finance sections are interesting because they really integrate
the consumer information that you also find in the review section and the tip
and advice section with partner providers so the consumer can apply for
insurance or financing options right then and there. They are able to maintain
credibility, offer quick access to other service providers and profit from the
setup.
4) Community
a) The
community aspect might seem like an investment in resources that does not
directly benefit - but by offering community members the ability to speak with
each other and talk about common issues they bring people back into the site
and generate a community and participate in valuable viral marketing for their
advertisers. This also encourages people to post information about their
experiences and ultimately feeds back into the credibility of information on
the website.
From a technical standpoint,
you'll need to ensure/consider that you have:
- Analytics to test overall
success of product/site design and usability as well as to measure
marketing results.
- Robust database for cross
linking within a site with deep informational resources
- Robust search
functionality
- Consumer feedback
mechanism/tool
- Software
for the integration of partner tools
Purchasing Management
- Tasks related to setting up, running and monitoring purchasing activities of
an organization.
In the case of purchasing management within a service based
website, the company needs to ensure that its paid resources and purchasing
processes are in alignment. Essentially, if we use Edmunds as an example again,
they need to ensure that any content they need to purchase is lined up and ready
and that the revenues related to the content production (SEO results,
popularity) are in fact sustaining the investment.
If we are talking about a service organization using the web
as a portal for advertising their business, they need to ensure that all
service related resources are available, whether that is any sort of reporting,
tool used in conducting the service, supplies etc.
From a technical standpoint,
you'll need to ensure/consider that you have:
- Accounting solution to
manage purchasing and forecasting
- Analytics to watch for
seasonal, traffic and industry trends for enterprise planning
- Analytics to measure
success factors of purchasing
- Credit
card processing
Forecasting and
Scheduling Management - Tasks relating to the management of the analytic
process of determining customer demand including determining the demand on
internal OM processes.
With all companies, forecasting and scheduling management are critical. Seasonality, changes in the market and current events can all directly impact service organizations. All of these service organizations need to be able to maintain security and functionality no matter the fluctuations in traffic and customer acquisition. Primarily this means maintaining accurate means of traffic and purchasing.
From a technical standpoint,
you'll need to ensure/consider that you have:
- Analytics to measure and analyze traffic
- Accounting System to manage customers and service purchasing and accurately forecast trends and seasonality
Inventory Management
- Tasks relating to the acquisition, maintenance and delivery of inventory to
destinations inside and outside production operations.
Inventory management, in relation to items, is not germane in a discussion about service based websites but staffing, feed management and content generation are concerns which could be considered the "inventory" of a service based website.
- Accounting System
- Content Management System
- Analytics Tools
- Human Resources Management
Quality Management
- Tasks required relating to the maintenance of product or service quality in
finished products an organization provides to customers
Human Resources
Management - Tasks relating to the planning, organizing, staffing and
directing human resources.
Reengineering and
Consulting Management - Tasks relating to the management of the
restructuring of production processes in an effort to improve efficiency.