The You Experience demands more of online Business

The annual general meeting of eBay was in a distinctly different mood from the past euphoric events full of happy small traders celebrating their enjoyment of eBay lifestyles. The traditional small traders were there to continue their protest – see previous CTO Blog post – about being disfranchised from the very business that they had created. It’s the other side of the story that I want to comment upon, the question of whether or not the eBay model can survive at all with out serious change in the face of an increasingly different online business world.
This blog is about the up shifting in expectations for online channels, changes in ratings engines and most of all about the experience that You the user get.


The facts and figures of eBay would be serious in any business, and enough iconic businesses have vanished in the past ten years to make the point that even icons need to change. Some figures; eBay has a strong profit engine in Paypal, but the core business has had almost no growth in active members, listings are up by only 4% from the previous quarter, with analysts predicting around 9% for the year. Now some facts; the comparison with Amazon who is growing at 32%, by continually changing and expanding its business model online, is one way of looking at the challenge eBay is facing in the market as more players come into its space.
The real issue is expectations are changing and the novelty value of treating the local flea market or car boot sale as an on line experience is simply not enough; instead the expectation is focussing around safe, (i.e. no risk of fraud), trading with good reliable customer service. Take a look at the search engines for finding a branded product at the best price and see how many have improved the way you can order the listing by the vendor’s service rating. When I wanted a particular washing machine recently the deciding factor in the end was the vendor with the best service rating, and I choose to pay £5 extra than the cheapest price to get that best rated service provider. Sure enough it turned out to be well worth while as the machine was a special compact model and turned into one of those terrible games of the vendor chasing the manufacturer to see when a batch would become available, but best of all keeping me continually updated with what was happening.
As my interface to the vender was through a browser throughout the two months of our relationship then believe me the importance of a good clear interactive interface became all to clear. At this point the second point hits home, Google has made a virtue out of the simplest cleanest interface, Amazon is different, but still clear, and eBay? Well what you see is what you get might be the slogan, but that’s not good enough, if the packaging was for the store shelf then it would be done just right for the audience attention, and so it should be for the experience that you and I want.
So next time you go to buy online try to follow what makes you choose the sites and finally decide where to buy; I think we are way past the eBay stage of amateurs selling and up into the professionals competing against each other – the YOU experience has become a crucial decider of where we buy. Now try the second test is the chosen environment a catalogue or is it interactive? Does it respond to your inputs with suggestions? That’s called customer service in conventional shops, and for online business it means really thinking through the design of the web based architecture and capabilities to support this. That’s pretty specialised stuff to do, but even the web 1.0 icons are going to have to face up to the change.
Good luck eBay, I still have a soft spot for you.

About the author

61.thumbnail The You Experience demands more of online Business Capgemini Global Chief Technology Officer, Andy is a member of the Capgemini Group management board and advises on all aspects of technology-driven market changes, together with being a member of the Policy Board for the British Computer Society. Andy is the author of many white papers, and the co-author three books that have charted the current changes in technology and its use by business starting in 2006 with ‘Mashup Corporations’ detailing how enterprises could make use of Web 2.0 to develop new go to market propositions. This was followed in May 2008 by Mesh Collaboration focussing on the impact of Web 2.0 on the enterprise front office and its working techniques, then in 2010 “Enterprise Cloud Computing: A Strategy Guide for Business and Technology leaders” co-authored with well-known academic Peter Fingar and one of the leading authorities on business process, John Pyke. The book describes the wider business implications of Cloud Computing with the promise of on-demand business innovation. It looks at how businesses trade differently on the web using mash-ups but also the challenges in managing more frequent change through social tools, and what happens when cloud comes into play in fully fledged operations. Andy was voted one of the top 25 most influential CTOs in the world in 2009 by InfoWorld and is grateful to readers of Computing Weekly who voted the Capgemini CTOblog the best Blog for Business Managers and CIOs each year for the last three years.




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