Benchmarking is a Key to Continuing E-Commerce Development

Because e-commerce Web site design is still a relatively new component of marketing, it is developing at a rapid pace. As a result, there are few tried-and-true rules that guide how an e-commerce Web site should be set up. Instead, active benchmarking of competitors and e-commerce Web sites in general is the way a company can keep e-commerce development moving forward.

The rules of e-commerce development are dynamic rather than static. This means that e-commerce Web site design should be viewed as a continuing process, rather than a project which is tackled and completed. The rules of e-commerce Web site design remain dynamic because of three forces which are in constant motion:

• Technology developments are changing the nature of what is possible, as well as the security responsibilities of an e-commerce Web site.
• E-commerce competition is fierce, so each new innovation causes a chain reaction of changes.
• Customer experience and expectations are growing exponentially, and the Web 2.0 mindset makes customer input a central part of the mix.

Identifying the Functional Emphasis of an E-Commerce Web Site
An e-commerce Web site may have hundreds of different features and functions, but to make a meaningful comparison the first step is for a company to decide what the functional emphasis of its Web site is. For example:

• Is the site transactional, designed as a means for customers to place orders?
• Is the site informational, used as a means of making vast amounts of detail available to interested parties?
• Is the site promotional, a vehicle for advancing company image and motivating customers to further action?

Note that these functions are not mutually exclusive, as it is possible for a Web site to perform more than one function. However, a company should not get caught up with making comparisons that are outside the mission of its web site.

In addition to these traditional functions, as Web sites become more interactive, they can also be a valuable source of customer feedback. Therefore, contributing to product development and design are other possible functions of an e-commerce Web site.

Creating a Comparison Matrix
Whatever the relevant functions of the company Web site, the components that contribute to those functions should be listed as the key elements for benchmarking comparisons. Then, a field of other Web sites should be identified and set up in a matrix for ranking and rating those elements.

In seeking other e-commerce Web sites for comparison, it is good to cast a wide net, including companies of different sizes and from a variety of industries. However, there should also be a clearly-identified core peer group of direct competitors for a highlighted set of comparisons.

Outcomes
In making these comparisons, a company should be looking for two types of outcomes:

• Immediate areas for improvement. Elements of the user experience which are clearly better on other Web sites should be prioritized for immediate redesign and upgrading.
• A best-in-class list for ongoing monitoring. Broad benchmarking efforts can only be undertaken periodically, but the e-commerce Web sites that emerge from this effort as offering the best in design, user experience, or other key attributes should be identified for regular monitoring.

Source
CRSDD at UQAM (PDF)