eCommerce Strategies for the Life Science Market
BioInformatics, LLC, June 2007, Pages: 180
Overview
Life science suppliers were among the first companies in any industry to grasp the commercial potential of the Web, and some leading companies are now receiving more than 50% of their orders online. However, launching an electronic catalog and shopping cart are not enough to generate online purchases. This report probes the technological and organizational challenges of eCommerce. Based on the responses of more than 1,200 life scientists, we examined the critical elements of a successful eCommerce strategy from optimizing online tools to scientists’ need for easy access to product information, pricing, convenient ordering and technical support.
eCommerce Statistics & Forecasts
This report examines online ordering in six product categories:
- Biologicals
- Kits
- Glassware and plasticware
- Apparatus and accessories
- Equipment and instruments
- Software
For each category, the amount spent per online order and the frequency of online orders is profiled. Based on scientists’ responses, online spending for research products is projected by product category. Customer and product value scores are also computed based on the amount spent, the number of orders, and the frequency of ordering.
Customer Evaluation of eCommerce Sites
Scientists reported on the supplier Web sites that they frequent for online ordering and the number of companies from which they typically purchase products online. Find out what your customers think about ordering online from your company and learn how satisfied they are with your online ordering tools. More than 20 companies are profiled in this report.
Improvements to Increase eCommerce
In this report, life scientists define the benefits of eCommerce and the potential risks that they perceive. Hint: Unsolicited marketing is one of the risks most often cited! Obstacles to online ordering are also explored. The report investigates customer expectations for the check-out process and problem resolution. Based on scientists’ input, areas where suppliers could increase use of eCommerce and improve customer satisfaction are identified. Personalization and other features of the ordering process are also examined as a means of enhancing the online experience and encouraging repeat Web-based purchases.
Report Objectives
This report will help life science companies identify the critical elements of a successful eCommerce strategy. From the perspective of life scientists, this report:
- Determines the percent of product orders placed online by product category
- Quantifies the customer value of eCommerce purchases by calculating the amount, frequency, and frequency of online orders by product category
- Ascertains which suppliers have model eCommerce sites
- Explains the influence of pricing on the online ordering process and customer’s use of online ordering tools to obtain pricing information
- Details the types of information customers need to facilitate their online ordering
- Identifies the types of assistance customers need to facilitate their use of a Web site’s eCommerce functions
- Measures customer satisfaction with key online ordering tools
- Assesses customer perceptions of the risks and benefits of eCommerce in the life sciences
- Outlines challenges customers perceive that limit their further adoption of online ordering and summarizes the reasons life scientists do not purchase products online
- Specifies customer tolerances for page load times, product locators, and Web site speed during the check-out process
- Highlights Web site features that help customize the eCommerce experience
- Reveals Web site features that encourage repeat eCommerce business
- Evaluates connections between receptivity to eMarketing and eCommerce activities
Data on the following companies is provided:
Affymetrix Millipore
Agilent Technologies New England Biolabs
Ambion PerkinElmer
Applied Biosystems Pierce
BD Biosciences Promega
Beckman Coulter Qiagen
Bio-Rad R&D Systems
Calbiochem Roche Applied Science
Clontech Santa Cruz Biotechnology
Dako Sigma-Aldrich
Eppendorf Stratagene
Fermentas Takara
GE Healthcare Thermo Fisher Scientific
Gilson VWR International
Integrated DNA Technologies Waters
Invitrogen
Millipore
New England Biolabs
PerkinElmer
Pierce
Promega
Qiagen
R&D Systems
Roche Applied Science
Santa Cruz Biotechnology
Sigma-Aldrich
Stratagene
Takara
Thermo Fisher Scientific
VMR International
Waters
Section 1. Analysis and Interpretation of Survey Results
Introduction
Study Objectives
Significant Findings eCommerce Stats
- Types of products ordered online
- Amount spent per online order
- Frequency of online orders
eCommerce Forecasts
- Spending growth rate projections
- Product value rankings
- Customer value rankings
Customer Evaluation of eCommerce Sites
- Companies frequented for online ordering
- User-friendly online ordering sites
- Customer satisfaction with online ordering tools
Optimizing the Customer’s eCommerce Experience
- Pricing
- Web site functionality
- Customer service
- Product selection
- Payment Options
- Order-related information
Increasing eCommerce Adoption
- Customizing the online shopping experience
- Encouraging repeat business
- Balancing risks and benefits
- Overcoming customer-perceived challenges
- Engaging non-adopters
Conclusion
Section 2. Study Methodology and Demographics
- Questionnaire Overview
- Questionnaire Design
- Analytical Techniques
- Demographics
- Questionnaire
Section 3. Presentation of Survey Data
Use of eCommerce
- Greatest benefit of eCommerce
- Greatest potential risk of eCommerce
- Percent of lab’s orders placed online, by product-category
- Online purchase of equipment or instrumentation-costing more than $5,000 USD
- Types of life science products personally ordered online
- Reasons for not placing life science product orders online
eCommerce Purchasing Behavior
- Average amount of money spent per online order, by product category
- Expected change in average amount of money per online order, by product category
- Typical number of online orders placed over a 12-month period, by product category
- Frequency of last online order, by product category
Preferences for Online Pricing of Life Science Products
- Use of a Web site’s eCommerce features to find product pricing for making a purchasing decision
- Frequency of purchasing after checking the price online
- Importance of visibility of specific pricing options in determining whether to purchase from supplier’s Web site
- Importance of pricing when making a decision to purchase products online, by product category
Opinions of Web Site Functionality
- Amount of time respondents are willing to wait for the results of a product search conducted through a company’s Web site
- Typical means of finding specific products of interest on companies’ Web pages
- Frequency of finding the information sought on the first search when using a company’s Web site search function
- Expectations of length of time to complete checkout process on a company’s Web page
- Importance of the speed of the Web site in making the decision to purchase a product online
Between April 19 and May 2, 2007, a survey was conducted, in which 1,769 scientists answered the screening questions (Questions 1 through 5) for this study. Of those, 1,206 were eligible to complete the full 41-question survey based on their experience with placing orders online for their research. The electronic questionnaire was fielded to registered members of The Science Advisory Board, an online community of more than 33,000 scientists, physicians and healthcare professionals from around the world. The Science Advisory Board is divided into two panels (Research and Clinical) and “convenes” regularly via the World Wide Web (www.scienceboard.net) to voice their opinions on a wide variety of issues relating to biomedical research and clinical technologies. These experts—representing all aspects of the life sciences and medicine—have agreed to make themselves available to participate in our online research activities.
The Science Advisory Board members who participated in this study were drawn from the Board’s Research Panel. Analytical techniques used in this report include the Derived
Importance Model, Product Value Score, and Customer Value Score.
Market Segment
Respondents=1,206
Academic 646 54%
Hospital or University Medical Center 206 17%
Pharmaceutical/Biotechnology 151 13%
Government 125 10%
Private Research 41 3%
Medical Device/Diagnostics 16 1%
Contract Research 15 1%
Commercial Testing Lab 6 <1%
Job Position
Respondents=1,206
Post Doctoral Fellow 249 21%
Principal Investigator 249 21%
Staff Scientist 249 21%
Professor/Teacher 147 12%
Graduate Student/Research Assistant 130 11%
Lab Director/Supervisor/Coordinator 128 11%
Laboratory Technician 43 4%
Department Head 7 1%
Purchasing Agent/Buyer 2 <1%
Bioengineer 1 <1%
Physician 1 <1%
Geographic Region
Respondents=1,206
North America 740 61%
Europe 330 27%
Asia 76 6%
Australasia/Pacific 30 2%
Central/South America 20 2%
Africa 10 1%
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