BUSI 3503U Chapter Notes - Chapter 5: Click-Through Rate, Online Advertising, Decision Points
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Web benefits to firms- the range of web benefits. Business models can be based directly on generating revenues. Business models can be based on improvements in product, service, operations and etc. Revenue- (cid:271)ased (cid:271)usi(cid:374)ess (cid:373)odels use the (cid:374)et to (cid:373)ake (cid:373)o(cid:374)e(cid:455) (cid:894)di(cid:396)e(cid:272)t(cid:895) Cha(cid:374)(cid:374)el pa(cid:455)s pe(cid:396)(cid:373)issio(cid:374) spo(cid:374)so(cid:396)ship: ba(cid:374)(cid:374)e(cid:396) ad(cid:448)e(cid:396)tisi(cid:374)g pa(cid:455)(cid:373)e(cid:374)t (cid:271)ased o(cid:374) i(cid:373)p(cid:396)essio(cid:374), (cid:272)li(cid:272)ks, pu(cid:396)(cid:272)hases, o(cid:396) a (cid:373)i(cid:454)tu(cid:396)e of all th(cid:396)ee, p(cid:396)ospe(cid:272)t fees (cid:272)li(cid:272)k th(cid:396)ough ads (cid:271)ased o(cid:374) ke(cid:455)(cid:449)o(cid:396)d sea(cid:396)ch, sales (cid:272)o(cid:373)(cid:373)issio(cid:374)s a(cid:373)azo(cid:374) affiliates; (cid:272)o(cid:373)(cid:373)issio(cid:374) (cid:396)ates f(cid:396)o(cid:373) 5-7. 5% Custo(cid:373)e(cid:396) pa(cid:455)s p(cid:396)odu(cid:272)t sales, pa(cid:455)-per-use, subscriptions, bundle sales. Custo(cid:373)e(cid:396) lifeti(cid:373)e value(cid:894)ltv(cid:895) a(cid:271)ilit(cid:455) to t(cid:396)a(cid:272)k, sto(cid:396)e a(cid:374)d a(cid:374)al(cid:455)ze i(cid:374)di(cid:448)idual (cid:271)eha(cid:448)iou(cid:396) o(cid:374)li(cid:374)e allows firms to calculate. Npv of future cash flows attributed to the customer relationship. Not every customer is equal; high support costs can drive some customer relationships below zero value. The highest 23% of customers are as profitable as the full customer base. The last 45% of customers, their contribution is negative.
