Abstract
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 are 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 recency of ordering.
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 recency 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
Methodology
Between April 19 and May 2, 2007, BioInformatics, LLC (Arlington, Virginia,
USA) conducted an online survey, 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. BioInformatics sponsors 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.
Data on the following companies is provided:
- Affymetrix
- Agilent Technologies
- Ambion
- Applied Biosystems
- BD Biosciences
- Beckman Coulter
- Bio-Rad
- Calbiochem
- Clontech
- Dako
- Eppendorf
- Fermentas
- GE Healthcare
- Gilson
- Integrated DNA Technologies
- 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
- VWR International
- Waters
Table of Contents
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 Adoptionc
- 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
- Recency 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
- Views of Online Customer Service
- Importance of ability to access specific types of orderrelated
information online
- Preferred means of communicating with a company representative for
questions during online ordering
- Length of time respondents are willing to wait for a company' s
representative to contact them after they' ve indicated a need for assistance
in online ordering
- Online Ordering from Life Science Web Sites
- Online purchases made from companies that are primarily manufacturers
vs. from companies that are primarily distributors
- Companies from which products are currently ordered online
- Most user-friendly online ordering among the companies currently
purchased from
- Shopping Experience with Most User-Friendly Supplier
- Importance of breadth of products from supplier to online purchasing
decision
- When ordering a product online, likelihood of ordering other products
from same supplier out of convenience
- Typical method of payment for online orders with supplier
- Preferred method of payment for online orders with supplier
- Satisfaction with specific Web site features of supplier
- Overall satisfaction with supplier' s Web site features
- Specific features that help customize online shopping experience with
supplier
- Which Web site features would encourage respondents to purchase products
online again from supplier
- Preferred way of obtaining documentation of order
- Challenges to Increasing Use of eCommerce
- Issues that prevent the lab from spending a greater percentage of its
overall budget online
- Level of concern about security breaches when purchasing life science
products online
Demographics
Section 4. Appendices
- Insights and Perspectives
- Supplemental Analysis and Cross-Tabulations of Survey Data
- Supplier Quadrant Analysis
- Other Recent Publications
- About BioInformatics
- Our Valued Clients
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