That's when Wilhelm contracted with a vendor to provide the company with an online program. Now, the company hands in a list of people eligible for service awards at the beginning of the year, and the vendor handles the rest.
But isn't L'Oreal USA paying a premium for such service? "It's actually less expensive than the paper program when you factor in the zero amount of time anyone here spends administering this," Wilhelm explains. "The lost work time was really the hidden cost in the old program."
As more HR functions go online, there's an increased interest in bringing awards programs online, says Bill Termini, national sales manager for Hinda Incentives Inc. in Chicago, a longtime industry vendor that began offering web-based awards programs in 1999.
Online awards systems can be connected with HR management systems, payroll systems or the company's enterprise resource planning system, says Kevin Jorgensen, president and CEO of Beyond Work Inc., a provider of incentive and recognition programs based in San Jose, Calif.
The ease and convenient access for employees is what prompted Southern Company, a Fortune 500 energy producer in the Southeast, to move its program online.
"When we moved the benefits enrollment process onto the web we saw immediate interest. In one year, online participation went from 26 percent to 82 percent," says Tripp Cagle, HR communications manager. "Based on that, we knew employees would be interested in an online awards program."
Mercury Interactive Corp., a software company in Sunnyvale, Calif., reaped financial rewards from its online incentives program. Amit Ronen, vice president of field technical operations, wanted to motivate field staff who maintain and troubleshoot computer systems.
"We asked them to voluntarily lot notes about opportunities they saw when on assignment, but the program was so-so. I thought that if we could create an incentive program we'd generate more interest," he explains.
For example, the field staff should look for holes in existing client systems and be alert to hear about weaknesses from client staff. Such situations could provide sales opportunities. The company implemented an online program in which field staff receive points for such leads and even more points for leads that generated business.
"The administration of this would have been way too much if the program wasn't online," Ronen says. "A $7,000 investment has generated more than $600,000 in new business."
Tracking Data
Dana Hubbard, a compensation analyst with Southern Company, says the online system has simplified administration of awards for the company's 26,000 employees.
"We can see what's being redeemed; so we know what's appealing to employees and can keep the program meaningful," she says.
PacifiCare Health Systems Inc., in Santa Ana, Calif., made the move to an online program for its 9,500 employees in June 1999 after an IRS audit turned up discrepancies.
"Each business unit had its own awards, nothing was centralized and it was a nightmare to keep track of," explains Tonia Rockwell-Koren, a senior compensation analyst.
Now that the online program automatically deducts taxes and keeps records for PacifiCare, Rockwell-Koren says, "I don't know how we ever managed the other way."
Online programs also give managers easy access to data and the flexibility to adjust information. "You can capture data easily and keep information current," says Michelle Smith, vice president of strategic sales for Bravanta Inc., an online awards program provider in San Francisco. "As priorities change, so too can programs. They can be altered with a click of the mouse."
With the data centralized in online systems, HR also can improve the effectiveness of the awards program and demonstrate that the program is making a difference.
For example, say you're running a safety program. HR can pull data to show a direct correlation between reduced accidents and incentives. In addition, the computer can run comparisons to highlight differences in accident costs before and after implementing the safety program. Then, those figures can be compared to program costs. The online program calculates these statistics, so no one has to spend weeks tallying and tracking information.
"Online programs prove what we already knew instinctively, that incentive programs motivate people and have an effect on the bottom line," says Smith. "An online system enables HR to keep data on ROI that generates board-level interest."
Wednesday, October 3, 2007
Monday, October 1, 2007
Managing Risks in Multiple Online Auctions: An Options Approach*
ABSTRACT
The scenario of established business sellers utilizing online auction markets to reach consumers and sell new products is becoming increasingly common. We propose a class of risk management tools, loosely based on the concept of financial options that can be employed by such sellers. While conceptually similar to options in financial markets, we empirically demonstrate that option instruments within auction markets cannot be developed employing similar methodologies, because the fundamental tenets of extant option pricing models do not hold within online auction markets. We provide a framework to analyze the value proposition of options to potential sellers, option-holder behavior implications on auction processes, and seller strategies to write and price options that maximize potential revenues. We then develop an approach that enables a seller to assess the demand for options under different option price and volume scenarios. We compare option prices derived from our approach with those derived from the Black-Scholes model (Black & Scholes, 1973) and discuss the implications of the price differences. Experiments based on actual auction data suggest that options can provide significant benefits under a variety of option-holder behavioral patterns.
The scenario of established business sellers utilizing online auction markets to reach consumers and sell new products is becoming increasingly common. We propose a class of risk management tools, loosely based on the concept of financial options that can be employed by such sellers. While conceptually similar to options in financial markets, we empirically demonstrate that option instruments within auction markets cannot be developed employing similar methodologies, because the fundamental tenets of extant option pricing models do not hold within online auction markets. We provide a framework to analyze the value proposition of options to potential sellers, option-holder behavior implications on auction processes, and seller strategies to write and price options that maximize potential revenues. We then develop an approach that enables a seller to assess the demand for options under different option price and volume scenarios. We compare option prices derived from our approach with those derived from the Black-Scholes model (Black & Scholes, 1973) and discuss the implications of the price differences. Experiments based on actual auction data suggest that options can provide significant benefits under a variety of option-holder behavioral patterns.
Online shopping receives seasonal boost - Actinic Software - Brief Article
An investigation from provider of PC-based e-commerce technology, Actinic Software Ltd, has revealed that many UK online stores had a seasonal boost in year-on-year growth.
In comparison to the average of 66% increase in year-on-year online sale, traditional high-street stores are reported to have experienced a flat Christmas.
Actinic asked for flash sales figures over the Christmas period from its retailers who had been trading online for more than a year.
Examples of online stores with year-on-year growth are Anything Left-Handed, with a 125% increase and The Gentleman's Shop, with a 121% growth.
In comparison to the average of 66% increase in year-on-year online sale, traditional high-street stores are reported to have experienced a flat Christmas.
Actinic asked for flash sales figures over the Christmas period from its retailers who had been trading online for more than a year.
Examples of online stores with year-on-year growth are Anything Left-Handed, with a 125% increase and The Gentleman's Shop, with a 121% growth.
Wednesday, September 26, 2007
Online shopping receives seasonal boost - Actinic Software - Brief Article
INTERNET BUSINESS NEWS-(C)1995-2003 M2 COMMUNICATIONS LTD
An investigation from provider of PC-based e-commerce technology, Actinic Software Ltd, has revealed that many UK online stores had a seasonal boost in year-on-year growth.
In comparison to the average of 66% increase in year-on-year online sale, traditional high-street stores are reported to have experienced a flat Christmas.
Actinic asked for flash sales figures over the Christmas period from its retailers who had been trading online for more than a year.
Examples of online stores with year-on-year growth are Anything Left-Handed, with a 125% increase and The Gentleman's Shop, with a 121% growth.
An investigation from provider of PC-based e-commerce technology, Actinic Software Ltd, has revealed that many UK online stores had a seasonal boost in year-on-year growth.
In comparison to the average of 66% increase in year-on-year online sale, traditional high-street stores are reported to have experienced a flat Christmas.
Actinic asked for flash sales figures over the Christmas period from its retailers who had been trading online for more than a year.
Examples of online stores with year-on-year growth are Anything Left-Handed, with a 125% increase and The Gentleman's Shop, with a 121% growth.
Seeing The E-Services Big Picture: Online Self-Service Can Pay Huge Dividends, But Requires More Than Simple Automation
"Emerging self-service technologies, such as automated e-mail response, natural language search and knowledge taxonomies, will improve specific aspects of the automation process. Other technologies such as text chat, voice over IP, 'call me back' requests, customer support automation and basic application integration will ease technology integration."
At least that's how the analysts at Gartner, Inc. viewed e-services back in December 2002, having conducted a study on the customer self-service movement. And though automation taking over for contact center agents was still in its business infancy in 2002, there was little reason to think such analyst forecasts wouldn't come to fruition.
At the same time Gartner and other industry forecasters stepped up their focus on self-service trends, multichannel and IP technologies were making waves in business communications circles. Therefore, the verdict more than three years ago that technology integration would eventually enhance e-services automation was a reasonable one.
As it turns out, the folks at Gartner were absolutely prophetic, particularly in their assessment about self-service technology and integration. Since their respective introductions, technologies such as multichannel communications, e-mail response automation, Web text chat and VoIP have continued to come together rather nicely. The business side of the e-services prophecy also is coming true in that many companies are finally beginning to understand the implications of consumers wanting service on their terms - that is, using their media of choice.
The Myths Of E-Services
Customers and tunnel vision aside, many organizations see e-services as being somewhat experimental. "Let's try this self-service thing in Department A first, and if it works, extend it to Department B, then Department C," etc. This kind of corporate thinking also tends to spawn other myths that presume self-service automation is:
* A quick and easy solution to keep up with competitors;
* A one-size-fits-all process that suits all customers and their needs;
* A means by which to reduce live interactions and eliminate agents; and
* The best way to reduce departmental costs.
The truth is this: Web self-service provides a significant opportunity for any business to both retain current customers and attract new ones - but only if an organization views e-services automation from the outside in, and implements a strategy for self-service continuity throughout the company. In other words, instead of looking at self-service as a competitive quick fix or a way to reduce one department's expenses, companies must be ready and able to deploy the online and associated multichannel options their customers want, and do so enterprisewide.
Covering Every Channel
Along with traditional phone, fax and voice mail avenues, today's consumer wants online self-service options to verify a current balance with accounting, to access a technical fix posted from tech support, and to get an automatic response to their e-mail inquiry and seamlessly place a product order with sales. Of course, Web strategies can be implemented incrementally, taking the "Department A, Department B, Department C" route if necessary, although the ultimate objective must be to ultimately extend every interaction type across the organization. Moreover, any e-services objective must be clearly presented to customers and employees alike. That means senior managers, as the analysts at Gartner said, should be willing to retool internal priorities, business rule processes and management responsibilities to make sure their e-services implementation covers every customer service base and interaction type.
At least that's how the analysts at Gartner, Inc. viewed e-services back in December 2002, having conducted a study on the customer self-service movement. And though automation taking over for contact center agents was still in its business infancy in 2002, there was little reason to think such analyst forecasts wouldn't come to fruition.
At the same time Gartner and other industry forecasters stepped up their focus on self-service trends, multichannel and IP technologies were making waves in business communications circles. Therefore, the verdict more than three years ago that technology integration would eventually enhance e-services automation was a reasonable one.
As it turns out, the folks at Gartner were absolutely prophetic, particularly in their assessment about self-service technology and integration. Since their respective introductions, technologies such as multichannel communications, e-mail response automation, Web text chat and VoIP have continued to come together rather nicely. The business side of the e-services prophecy also is coming true in that many companies are finally beginning to understand the implications of consumers wanting service on their terms - that is, using their media of choice.
The Myths Of E-Services
Customers and tunnel vision aside, many organizations see e-services as being somewhat experimental. "Let's try this self-service thing in Department A first, and if it works, extend it to Department B, then Department C," etc. This kind of corporate thinking also tends to spawn other myths that presume self-service automation is:
* A quick and easy solution to keep up with competitors;
* A one-size-fits-all process that suits all customers and their needs;
* A means by which to reduce live interactions and eliminate agents; and
* The best way to reduce departmental costs.
The truth is this: Web self-service provides a significant opportunity for any business to both retain current customers and attract new ones - but only if an organization views e-services automation from the outside in, and implements a strategy for self-service continuity throughout the company. In other words, instead of looking at self-service as a competitive quick fix or a way to reduce one department's expenses, companies must be ready and able to deploy the online and associated multichannel options their customers want, and do so enterprisewide.
Covering Every Channel
Along with traditional phone, fax and voice mail avenues, today's consumer wants online self-service options to verify a current balance with accounting, to access a technical fix posted from tech support, and to get an automatic response to their e-mail inquiry and seamlessly place a product order with sales. Of course, Web strategies can be implemented incrementally, taking the "Department A, Department B, Department C" route if necessary, although the ultimate objective must be to ultimately extend every interaction type across the organization. Moreover, any e-services objective must be clearly presented to customers and employees alike. That means senior managers, as the analysts at Gartner said, should be willing to retool internal priorities, business rule processes and management responsibilities to make sure their e-services implementation covers every customer service base and interaction type.
Friday, September 21, 2007
Online holiday sales retreat from previous years' pace - Brief Article - Statistical Data Included
In contrast to the last three seasons, the once exuberant online holiday selling season will likely serve as the industry's most striking example of "negative growth." Following the events of Sept. 11, several firms, such as Jupiter Media Metrix, have toned down early sales forecasts. Jupiter, for example, now anticipates that online holiday retail sales will ring up $10 billion, a 15% increase over 2000, and the combined online holiday retail and travel sales figure will be $11.9 billion, up 11%. This compares to sales spikes of 54% in 2000 and a staggering 126% in 1999.
Online sales growth has slowed faster than Internet pundits had collectively predicted in the Internet's golden days. In fact, e-commerce sales now stand little to no chance of reaching the trillion-dollar mark by 2003, a time frame put forth merely two years ago by companies such as International Data Corp. and the University of Texas.
In a recent report, Jupiter referred to the slowdown in growth as a "blessing in disguise," reasoning that modest growth expectations allow retailers to scale their businesses to balance consumer expectations and profitability.
Despite the slowdown, e-commerce has not come to a shrieking halt. The Yankee Group analyst Paul Ritter, who predicts a modest single-digit increase of 7% to $9.5 billion, points out that there are still certain growth factors in the sector. Each year, more and more consumers warm up to the idea of shopping online. Jupiter anticipates 10 million more people will buy gifts online this holiday, to total 46 million, up from 36 million in 2000. That said, the traffic boost will likely be offset by shrinking holiday budgets.
And contrary to earlier speculation, the "bunker mentality" is not deterring consumers from frequenting stores. A recent Goldman Sachs, Harris Interactive and Nielsen/NetRatings survey found that 78.3% of this year's holiday shopping will be done in the stores, down slightly from 79.9% in 2000.
Since the mass exodus from the stores to the online channel never took hold, retailers have spent the better part of 2001 trying to quantify the effects of their online business on their stores.
Over the course of 2001, a lot of retailers stopped looking at their online divisions as a separate part of their business, said Jupiter analyst Rob Leathern. The change in corporate philosophy prompted retailers such as Staples, Kmart and Wal-Mart to reel their previously spun-off Internet in-house. Now under the umbrella of a public company, Internet businesses such as Walmart.com and BlueLight.com did away with drains on their budgets, such as free Internet access for customers, a mainstay of the original BlueLight marketing campaign.
Online sales last holiday trumpeted the bricks-andclicks model as the winning formula. Analysts such as Leathern note that throughout the year, consumers have continued to gravitate toward multichannel players.
Ritter went so far as to suggest Amazon is adapting its business model to that of a bricks-and-clicks player through partnerships with Toys "R" Us, Borders, Circuit City and Target. The multichannel approach offers retailers a greater opportunity to capture more market share.
Jupiter research shows that for every dollar spent online, consumers spend another $5 in the stores as a direct result of online research.
Best Buy's own consumer research revealed 80% of consumers surveyed preferred to buy in the store rather than through a catalog or online. Moreover, the research function of Bestbuy.com served to enhance the consumer's experience in the store, said president and ceo Brad Anderson at the International Mass Retail Association's holiday press conference. "'What we discovered over 2001 is that it is truly a clicks-and-mortar strategy."
While retailers have inched closer to a successfully integrated multichannel approach this year, the events of Sept. 11 have thrown them another curveball in terms of fulfillment. Several retailers have set earlier cut-off dates for shipping. Toys "R" Us gave a ballpark date of Dec. 10, a little on the early side compared to past years. Leathern said the earlier dates come after some retailers faced fines from the Federal Trade Commission for failing to deliver on time. "There's an increased sensitivity that external factors-such as shipping- maybe more of an issue because of current events," said Leathern Amazon's in-store pickup deal with Circuit City may help offset sales lost from fewer selling days, said Ritter.
Online sales growth has slowed faster than Internet pundits had collectively predicted in the Internet's golden days. In fact, e-commerce sales now stand little to no chance of reaching the trillion-dollar mark by 2003, a time frame put forth merely two years ago by companies such as International Data Corp. and the University of Texas.
In a recent report, Jupiter referred to the slowdown in growth as a "blessing in disguise," reasoning that modest growth expectations allow retailers to scale their businesses to balance consumer expectations and profitability.
Despite the slowdown, e-commerce has not come to a shrieking halt. The Yankee Group analyst Paul Ritter, who predicts a modest single-digit increase of 7% to $9.5 billion, points out that there are still certain growth factors in the sector. Each year, more and more consumers warm up to the idea of shopping online. Jupiter anticipates 10 million more people will buy gifts online this holiday, to total 46 million, up from 36 million in 2000. That said, the traffic boost will likely be offset by shrinking holiday budgets.
And contrary to earlier speculation, the "bunker mentality" is not deterring consumers from frequenting stores. A recent Goldman Sachs, Harris Interactive and Nielsen/NetRatings survey found that 78.3% of this year's holiday shopping will be done in the stores, down slightly from 79.9% in 2000.
Since the mass exodus from the stores to the online channel never took hold, retailers have spent the better part of 2001 trying to quantify the effects of their online business on their stores.
Over the course of 2001, a lot of retailers stopped looking at their online divisions as a separate part of their business, said Jupiter analyst Rob Leathern. The change in corporate philosophy prompted retailers such as Staples, Kmart and Wal-Mart to reel their previously spun-off Internet in-house. Now under the umbrella of a public company, Internet businesses such as Walmart.com and BlueLight.com did away with drains on their budgets, such as free Internet access for customers, a mainstay of the original BlueLight marketing campaign.
Online sales last holiday trumpeted the bricks-andclicks model as the winning formula. Analysts such as Leathern note that throughout the year, consumers have continued to gravitate toward multichannel players.
Ritter went so far as to suggest Amazon is adapting its business model to that of a bricks-and-clicks player through partnerships with Toys "R" Us, Borders, Circuit City and Target. The multichannel approach offers retailers a greater opportunity to capture more market share.
Jupiter research shows that for every dollar spent online, consumers spend another $5 in the stores as a direct result of online research.
Best Buy's own consumer research revealed 80% of consumers surveyed preferred to buy in the store rather than through a catalog or online. Moreover, the research function of Bestbuy.com served to enhance the consumer's experience in the store, said president and ceo Brad Anderson at the International Mass Retail Association's holiday press conference. "'What we discovered over 2001 is that it is truly a clicks-and-mortar strategy."
While retailers have inched closer to a successfully integrated multichannel approach this year, the events of Sept. 11 have thrown them another curveball in terms of fulfillment. Several retailers have set earlier cut-off dates for shipping. Toys "R" Us gave a ballpark date of Dec. 10, a little on the early side compared to past years. Leathern said the earlier dates come after some retailers faced fines from the Federal Trade Commission for failing to deliver on time. "There's an increased sensitivity that external factors-such as shipping- maybe more of an issue because of current events," said Leathern Amazon's in-store pickup deal with Circuit City may help offset sales lost from fewer selling days, said Ritter.
Behind the magic: how do stellar sellers work their magic? From the first cold call to closing the deal, discover the top sales secrets of some seriou
The secret to a successful sales letter is making it took just like a typical business letter. You want to position yourself as a peer who has a great idea and a helpful offer. In working with sales Consultants at IBM, we coach them to start where the last conversation left off--something like, "After your comment to me on the phone last month, I've been thinking about a way to X." Your opening shot can't be a misfire.--Dianna Booher, author of E-Writing: 21st Century Tools for Effective Communication and CEO of Booher Consultants Inc., a Dallas/Fort Worth-area communication training firm
How to generate repeat business
Our customers aren't customers; our customers are owners. That sets a certain bar. If one of our owners is going to take a flight, a sales vice president may be helping with the luggage and the catering. We feel like if we get in front of our customers and we hustle, at the end of the day, it will be translated into repeat business.--Kenny Dichter, founder of New York City-based Marquis Jet, an 80-employee global leader in private jet cards whose Marquis let Card Program has a 90 percent customer renewal rate
How to upsell your current clients
I asked a client if they were thinking about redoing their website. They said, "No." I didn't tell them, but I was going to work on something because I had a vision for it. I presented it to them, and they loved it. I had a $10,000 sale for that website. The biggest secret is just taking the time to think, "What does my client need that he's not asking for?"--Paula Yakubik, founder of MassMedia, a 7-year-old Las Vegas PR and advertising firm with 18 employees and $3.5 million in annual sales
How to hire a good sales manager
Successfully hiring a strong sales manager is a balance between science and art. All strong sales-manager candidates exhibit three behavioral traits: a high energy level, tenacity and competitiveness. The biggest mistake companies make is that they try to find someone who will change the process because sales are not at the desired level. The majority of the time, the process isn't broken; what they didn't find was someone who has sold in that process before. Finding a manager compatible with the process is crucial.--Jim Kasper, author of Creating the #1 Sales Force: What It Takes to Transform Your Sales Culture
How to offer great customer service
The big secret is to passionately believe in your people. It's easy to say and difficult to execute unless you're in a culture that supports and encourages great customer service. Everyone's going that extra mile. Behind every transaction is a personal relationship.--Jack Mitchell, author of Hug Your Customers: The Proven Way to Personalize Sales and Achieve Astounding Results and CEO of Mitchells/Richards, a high-end Connecticut clothing retailer with $70 million in annual sales
How to generate repeat business
Our customers aren't customers; our customers are owners. That sets a certain bar. If one of our owners is going to take a flight, a sales vice president may be helping with the luggage and the catering. We feel like if we get in front of our customers and we hustle, at the end of the day, it will be translated into repeat business.--Kenny Dichter, founder of New York City-based Marquis Jet, an 80-employee global leader in private jet cards whose Marquis let Card Program has a 90 percent customer renewal rate
How to upsell your current clients
I asked a client if they were thinking about redoing their website. They said, "No." I didn't tell them, but I was going to work on something because I had a vision for it. I presented it to them, and they loved it. I had a $10,000 sale for that website. The biggest secret is just taking the time to think, "What does my client need that he's not asking for?"--Paula Yakubik, founder of MassMedia, a 7-year-old Las Vegas PR and advertising firm with 18 employees and $3.5 million in annual sales
How to hire a good sales manager
Successfully hiring a strong sales manager is a balance between science and art. All strong sales-manager candidates exhibit three behavioral traits: a high energy level, tenacity and competitiveness. The biggest mistake companies make is that they try to find someone who will change the process because sales are not at the desired level. The majority of the time, the process isn't broken; what they didn't find was someone who has sold in that process before. Finding a manager compatible with the process is crucial.--Jim Kasper, author of Creating the #1 Sales Force: What It Takes to Transform Your Sales Culture
How to offer great customer service
The big secret is to passionately believe in your people. It's easy to say and difficult to execute unless you're in a culture that supports and encourages great customer service. Everyone's going that extra mile. Behind every transaction is a personal relationship.--Jack Mitchell, author of Hug Your Customers: The Proven Way to Personalize Sales and Achieve Astounding Results and CEO of Mitchells/Richards, a high-end Connecticut clothing retailer with $70 million in annual sales
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