The Marketing Book 5th Edition

100

75

50

25

0

Proportion of customers (%)

Current +2 +5 +10

Years

On-line revenue

contribution (%)

Buy – on-line

e-commerce

sales (%)

On-line promotion

contribution (%)

Influence –

information

access (%)

E-marketing 649

Specific objectives are created for each. Con-
sider sales – a typical objective might be:

To grow the business with on-line sales, e.g. to

generate at least 10 per cent of sales on-line.

Within six months.

Or

To generate an extra £100 000 worth of sales on-

line by December.

These objectives can be further broken down,
e.g. to achieve £100 000 of on-line sales means
you have to generate 1000 on-line customers
spending on average £100 in the time period. If,
say, your conversion rate of visitors to custom-
ers was a high 10 per cent, then this means you
have to generate 10 000 visitors to your site.
Specific targets for the on-line revenue con-
tributionfor different e-channels should be set
for the future, as shown in Figure 25.6. For
example, Fisher (2001), in the Financial Times,
reported a range of variation in on-line revenue
contribution for Sandvik Steel. At the time of
the article, only a small number of all orders

were transacted over the web. Nordic countries

are leading the way. Around 20 per cent of all

orders from Denmark are on-line and 31 per

cent of those from Sweden. The proportion in

the US, however, is only 3 per cent, since most

business goes through distributors and is con-

ducted by electronic data interchange(EDI). Over

the next six months, the company hopes to raise

the US figure to 40 per cent and, in two years,

between 40 and 50 per cent of total orders are

planned to come via the web.

Annika Roos, marketing manager at Sand-

vik Steel, specified Sandvik’s objectives as

follows: ‘by the end of December, 2001, we

want a confirmation from at least 80 per cent of

key customers that they consider the extranet to

be a major reason to deal with Sandvik. Our

aim is to have 200 key customers using the

extranet at the end of June 2001.’

Objectives should also be set for the per-

centage of customers who are reached or

influenced by each channel (indirect on-line

revenue contributionor brand awareness in the

target market). The on-line revenue contribu-

tion should also consider cannibalization– are

Figure 25.6 An example of objective targets for direct and indirect on-line revenue contribution