May 1999

 

Towards The Intellectual Property Content Model

by Marc Phillips

 

Commercially successful websites have evolved far beyond pure brochure ware. They now provide a sophisticated combination of technology, transactions, content and interactivity. Some go further to provide consumer personalisation and intellectual property……what I believe is the content killer application on the web.

 

Whilst most websites adopting this approach are currently from the United States, Australia has some small online businesses beginning to employ this advanced content model.

 

The evolution of websites from simple product specification brochures to e-commerce enabled businesses has resulted in many websites following the transactive content model. The subtle introduction of targeted, value added content, however, is also making a significant impact. This style of content draws deeply on the depth of businesses understanding of all aspects of their target market; directly addressing known areas of interest and lifestyle, and leading consumers gently but firmly towards a more ‘one on one’ experience and to online purchasing decisions. The application of what can best be termed ‘intellectual property’ to websites, is leading online sales processes to match the sophistication of the underlying technology.

 

It is about speaking much more personally to the consumer and provides strong differentiating factors between websites.

 

Looking at the differences between various retail stores online provides some good examples of how both large and small online businesses are utilising the Intellectual Property Content Model.

 

A excellent demonstration of these features in action can be seen at the United States website, Gap Online; ((ttp://www.gap.com ) Gap has translated its universally accepted, slightly preppy clothes style onto the Internet. Consumers are given much more than a website with e-commerce facilities. Seasonal fashion previews are online, as well as style hints for the Gap customer’s next visit to the world’s major cities and packing tips. Users can try out various clothing combinations on online models, purchase or send the items as gifts. Once clothes are ordered, paid for and dispatched, the buyer can keep track of the delivery of their purchase through the associated FedEx or UPS websites.

 

All of these features draw the consumer into the ‘Gap’ experience, reasserting the brand and values that the company stands for. The value added content and interactivity is aimed firmly at the Gap market. In addition, the consumer is looked after, in different ways, from the beginning of the visit to the website until the product is delivered.

 

Integral to these online shopping models and driving the vendors forward, is the increasing power offered to the consumer. An online consumer can leave the store at a single mouse click if the store experience is not one they like, whereas an offline buyer may ‘make do’ because they do not wish to walk or drive the extra distance to find what they really want.

 

Another United States website gaining increasing industry attention is Office Depot (http://www.officedepot.com). The website recently won two major United States industry awards; the 1998 CIO Web Business 50/50 Award and the Retail Network Innovation Award. Both of these awards recognise that Office Depot is employing an innovative business model.

 

The Office Depot website enables users to search through thousands of brand name office products and place orders online. A real time product inventory ensures the shopper can see immediately if the stock ordered is available and next business day delivery to 95 per cent of the United States is guaranteed. The service also incorporates a very flexible search engine that allows users to search the vast database by keyword or product reference.

 

So far, this sounds like a sophisticated e-commerce site. Office Depot however are going one step further, using sales orientated value added content to target and personalise their approach to their main market; small business and home office professionals. Hence, driving their model towards the Intellectual Property Content Model.

 

Using a section of the website called ‘In Business’ Office Depot wrap helpful articles and resource material around detailed and objective product coverage. Shoppers read the reviews and can then purchase the products directly from the Office Depot website.

 

Office Depot also display the results of an ongoing customer satisfaction survey, assuring prospective customers of the quality of their service.

 

Office Depot’s understanding of the requirements of their market, and their ability to translate this effectively online, using standard content, transactions, sales orientated added value content (their intellectual property) and interactivity, has made the Office Depot website a recognised success.

 

The emerging trend from the United States is clearly one in which the sophistication of the online sales approach is beginning to catch up with the technical advances that have been made in e-commerce. This approach also enables small businesses to compete on a level playing field against larger, more well known brands.

 

Australia is beginning to see early signs of this trend being adopted here.

 

The websites of some of our smaller online businesses show how well they take their detailed understanding of the requirements of their own market and translate this into improved service or compulsive online environments.

 

Boots Online (http://www.bootsonline.com.au) is a small online retail store, catering to the market for a ‘high country’ style of dressing. They make use of the excellent testimonials they receive from customers, posting them online. Along with the third party verification by Public Eye, prospective customers can feel confident before they buy.

 

The service Boots Online provide does not stop at the purchase stage however. Every customer is sent a thank you letter once the purchase is made and it is here that the Intellectual Property of the store owner is used as a marketing weapon. By impressing customers with his knowledge about how to care for their products, Boots Online ensure a high rate of repeat business.

 

Another Australian company to prove that small businesses can use the opportunities provided by the Internet to compete with big business is Nicks Wines Merchants (http://www.sofcom.com.au/Nicks)

 

With the recent rationalisation of the Australian wine industry in the last decade and the increasing pressure on prices of premium wines, Nicks Wine Merchants has used their depth of knowledge and experience of their market, (their intellectual property) to position themselves as an online business who speaks directly to the consumer.

 

In doing so, Nicks Wine Merchants goes well beyond a standard, product based e-commerce website. Shoppers visiting the website can read wine reviews and tasting notes with up to new listing 400 each month, take virtual tours of vineyards, and receive a free newsletter each month.

 

The manner in which Nicks Wine Merchants have combined not only content, interactivity and transactions, but also their intellectual property online, positions the business as an experienced niche provider, with a depth of knowledge. They understand that their customers want more than just sales through a sales catalogue - they want to a complete wine experience. Nicks Wine Merchants have done this by recognising and addressing their customers interests directly; not only giving them the opportunity to buy wine, but also to read about it and ‘taste’ it and ‘see’ it, through tasting notes, reviews, and virtual vineyard tours.

 

Post purchase comfort is catered for as well, with a great feature enabling shoppers.

 

It may be however, that, online businesses greatest protection, and opportunities, lie in the effective translation of their intellectual property to their websites. That is recognising and utilising their depth of product and market knowledge to move beyond the provision of ‘plain vanilla’ content and transactions, in order to provide consumers with a more personalised, powerful and subtly compulsive shopping experience.

For further information contact APT Strategies at info@aptstrategies.com.au