Transcript G0222

Personalization in Business &
Consumer Markets
Managing IT & E-Business
EMBA – Spring 2001
Group 0222
Harri’s Pools Business Overview
• Brick and Mortar
• No Web Presence
• Large operation w/
existing database
• High Touch / Feel Service
• Very Personal
IT Business Problem
• Web Presence
• Personal on the
• Increased Competition
• Price Competitive
• Growing business
• Product differentiation
IT Business Problem
Web Personalization Tactics
Data Mining/Warehousing
Customer Privacy
Interactive Surveys
Targeted Email Marketing
Targeted Email Newsletters
Intelligent Product Packaging
Online Communities/Message Boards/Chat
Building Loyal
Customer Customization
Data Mining & Warehousing
Web Servers
Data Mining & Warehousing
Capture and retain relevant information
Track changes in customer preferences
Track customer navigation
Use cookies for identification
Customer Privacy
• Take responsibility for customer specific
• Do not sell mailing lists
• Personalization Consortium
Interactive Surveys
• Information gathering technique
• Used to enhance the e-experience of our
• Identify buying preferences and target
Example Survey
When you were here last, you purchased Brand X chlorine
Did they work as well as expected?
Next Question
Targeted Advertising
• Email newsletter (customized by customer)
• Email product notification
• Concerns
– Need to gather continuous feedback to avoid
acting on outdated or irrelevant information
– Capturing information on existing customers to
allow immediate personalization
Intelligent Packaging
• Tracking purchase patterns of customer groups
• If buying patterns appear, quickly promote
products to see if a larger market exists
• Identify “Power Buyers”
– Use them to test new products
– Post testimonials
• On web site
• Display to customers with similar preferences or buying habits
Online Communities/Message
• Create knowledge areas
Pool maintenance
Product discussions
Used pool equipment (buying and selling)
New pool owners
Considering buying a new pool?
Ask Harri the pool man
• Excellent way to gather customer preferences
Message Boards
Message Board
Pool Maintenance
We just had a dust storm blow through and my pool is full of mud.
What is the best way to clean it?
8 responses
I have a 15000 gallon pool, how often should I change my pool’s filter?
2 responses
1. Check your maintenance manual
2. Wow I did not know you were supposed to change it!
Ask Harri the Pool man
Ask Harri the Pool Man
Scheduled Times
Every odd Monday 4 – 6 pm EST
Enter Chat room
Building Loyalty
• Unsurpassed customer service
• Even if competitor has a lower price, the customer
will know that the after sales service is worth it.
• Being able to recall customer preferences
– Recalling last purchase and credit card used
– Recalling delivery preferences from past purchases
• Link existing help desk with web database
Switching Costs
• Rewards program
– Similar to airline frequent flyer programs
– Instead of lower prices to get sales, reward the
customer for repeat buying
– Sign up with existing rewards company
– Create our own rewards program
Switching Costs
Existing Rewards Companies
Switching Cost
Referral Program
Implement a referral program designed to
reward those who send business our way!
The incentive program and referral programs
are not mutually exclusive.
Customer Customization
• Pool tips of the day
• Specific product information (based on customer
• Order status and order history
• Reminder messages
– Maintenance schedules
– Personal reminders
• Local weather
• Stock information
• More personalization = more actionable
data = reduced marketing costs
• Create repeat business through targeted and
up to date customer preferences
• Higher customer retention
• Easier to sell to repeat customers
• Increase revenue per customer with
effective implementation of personalization
Implementation Considerations
• Application Service Providers
– Our expertise is pools not IT
– Resources required (capital and personnel)
– Time to market
Implementation Considerations
Data storage/data warehousing
IT infrastructure and integration
Web strategies
Process design and process rule creation
Training of employees
Legal considerations
Support Activities
Organization concerns
Primary Activities
Training and Legal Considerations
ASPs,Data Storage, Cookies, Data mining/warehousing, IT Infrastructure
Purchasing concerns
Organization Recall Prefs
Banner Ads
Screen Design
Online Promo
Email Coupons
Linking Help Desk w/ web DB
Order status/history
Message Boards