Community Storefronts Marketplace - Canada
In June 1998, an e-commerce pilot website was launched through the efforts of Industry Canada, Royal Bank of Canada, Strategic Profits Inc. (SPI), and Open Market!. In May 1999, Community Storefronts became a commercialised e-commerce portal, offering e-solutions for small- and medium-sized companies, large corporations, government and educational institutions, as well as not-for-profit and charity organisations. Following a training process, these organisations were empowered to raise money for their particular cause, or sell their wares, online. The overall aim of the 1-year pilot project was to facilitate the development of e-commerce in Canada's rural regions. Specific goals included:
The pilot project was conducted in two "rounds". On the whole, 90 organisations - 70% business and 30% charities - participated in the first round. Partners had created profiles for the participants so that they could assess levels of computer and Internet knowledge and skills; this enabled them to divide training seminars into novice, intermediate, and expert levels. The 1-day seminars focussed on Internet business and marketing strategies - for instance, participants were taught how to manage their shopping carts for sales. The idea here was to remove the confusion sometimes associated with ensuring security and privacy in e-commerce, as well as the challenge of determining how to host and what technology to use, by providing these tools at the outset. There were no ongoing communication strategies built in - trainers simply were present to help with questions, concerns, or tutorials. The goal was to keep participants engaged in the learning process. The cost was kept low (CDN$250) as part of an effort to reduce financial risk and keep participants interested in learning and communicating.
After discussion of the relevant data and communication with the participants and 5 computer assisted processing (CAP) leaders, one of the partners (SPI) instituted an online communication software for the purpose of online mentoring and real-time communication. This advance gave participants the ability to ask questions and post issues and problems. The cost of round 2 was increased to CDN$300, which included that 24 hour per day, 7 day per week customer support, online mentoring, and tutorials. Otherwise, round 2 was the same as round 1 - with weekly 2-hour sessions (proven business and marketing strategies) and brainstorming sessions that were meant to help participants with questions, technical issues, and business and marketing strategies. Trainers gave participants the tutorials, business plans, and marketing strategy outlines; participants were asked to prepare the plans, which they could post online for feedback and critique. Every week an online communicator offered brainstorming forums with the intention of enabling participants to strengthen their businesses and learn specific online fundraising techniques. It was mandatory to read each week's tutorial as part of the cost of entry; online communication software allowed organisers to quantify each participant's engagement through login data and posted questions, and then to compare that level of participation against each organisation's actual revenue generation. (Those participants with the highest revenue generations and fundraising revenue correlated back to those that read the tutorials and participated in the brainstorming sessions).
When the pilot ended in the fall of 1999, the Community Storefronts site was commercialised. It offers web hosting, web design, database programming, online training, shopping cart applications, digital certificate upload, payment and billing forms, etax receipting, automated billing, apportionment, and credit card and cash transactions. At this site, visitors may support charities, search for merchants, sign up to become a merchant, or inquire about "e-philanthropy" solutions.
- finding out how the Internet medium could be used to help create sustainable jobs and economic development in rural regions of Canada
- putting 150 small and medium sized enterprises (SMEs) and charities online, training them to create an online business or create a fundraising channel
- gathering information to further economic development and job creation in rural Canada.
The pilot project was conducted in two "rounds". On the whole, 90 organisations - 70% business and 30% charities - participated in the first round. Partners had created profiles for the participants so that they could assess levels of computer and Internet knowledge and skills; this enabled them to divide training seminars into novice, intermediate, and expert levels. The 1-day seminars focussed on Internet business and marketing strategies - for instance, participants were taught how to manage their shopping carts for sales. The idea here was to remove the confusion sometimes associated with ensuring security and privacy in e-commerce, as well as the challenge of determining how to host and what technology to use, by providing these tools at the outset. There were no ongoing communication strategies built in - trainers simply were present to help with questions, concerns, or tutorials. The goal was to keep participants engaged in the learning process. The cost was kept low (CDN$250) as part of an effort to reduce financial risk and keep participants interested in learning and communicating.
After discussion of the relevant data and communication with the participants and 5 computer assisted processing (CAP) leaders, one of the partners (SPI) instituted an online communication software for the purpose of online mentoring and real-time communication. This advance gave participants the ability to ask questions and post issues and problems. The cost of round 2 was increased to CDN$300, which included that 24 hour per day, 7 day per week customer support, online mentoring, and tutorials. Otherwise, round 2 was the same as round 1 - with weekly 2-hour sessions (proven business and marketing strategies) and brainstorming sessions that were meant to help participants with questions, technical issues, and business and marketing strategies. Trainers gave participants the tutorials, business plans, and marketing strategy outlines; participants were asked to prepare the plans, which they could post online for feedback and critique. Every week an online communicator offered brainstorming forums with the intention of enabling participants to strengthen their businesses and learn specific online fundraising techniques. It was mandatory to read each week's tutorial as part of the cost of entry; online communication software allowed organisers to quantify each participant's engagement through login data and posted questions, and then to compare that level of participation against each organisation's actual revenue generation. (Those participants with the highest revenue generations and fundraising revenue correlated back to those that read the tutorials and participated in the brainstorming sessions).
When the pilot ended in the fall of 1999, the Community Storefronts site was commercialised. It offers web hosting, web design, database programming, online training, shopping cart applications, digital certificate upload, payment and billing forms, etax receipting, automated billing, apportionment, and credit card and cash transactions. At this site, visitors may support charities, search for merchants, sign up to become a merchant, or inquire about "e-philanthropy" solutions.
Development Issues
Economic Development, Technology.
Key Points
Organisers explain that round 1 was almost a complete failure in rentention of participants at the end of the pilot. Round 2 saw a retention of 18% of the participants willing to commit to ongoing online business. The charities had higher returns than the businesses. It was those charities with traditional medium marketing that had the best results, as they tuned their traditional mediums to their online donation forms. To cite one example, the Red Cross had created funds of about CDN$25,000 within the first 10 days of going live online.
Organisers explain that some of the issues impacting the success of this project were: not enough financial risk to participants to commit to the allotted time to create success online; shipping difficulties; product mix difficulties; not enough personal, one-on-one expertise in the training process; and not enough traditional marketing to call attention to their products and services.
Organisers explain that some of the issues impacting the success of this project were: not enough financial risk to participants to commit to the allotted time to create success online; shipping difficulties; product mix difficulties; not enough personal, one-on-one expertise in the training process; and not enough traditional marketing to call attention to their products and services.
Partners
Industry Canada, SPI, RBC Canada, and GE Capital.
Sources
Posting dated February 11 2004 to rural-comm, An Electronic Discussion on The Role Of Communication in Rural Development Projects (click here for the archives); and Community Storefronts site.
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