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 Internet • 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 Incentives/Referrals Customer Customization Data Mining & Warehousing Cookies Customer Portal Web Servers Database Personalized Information Surveys Inventories 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 information • Do not sell mailing lists • Personalization Consortium Interactive Surveys • Information gathering technique • Used to enhance the e-experience of our customers • Identify buying preferences and target advertising Example Survey Pools Survey When you were here last, you purchased Brand X chlorine tablets. z 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by customer) • Email product notification • Concerns – Need to gather continuous feedback to avoid acting on outdated or irrelevant information – Capturing information on existing customers to allow immediate personalization Intelligent Packaging • Tracking purchase patterns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 Boards • 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 Pools Message Board Pool Maintenance z 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 Pools Ask Harri the Pool Man Scheduled Times Every odd Monday 4 – 6 pm EST Username Password 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 request) • Order status and order history • Reminder messages – Maintenance schedules – Personal reminders • Local weather • Stock information Benefits • 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 Logistics Support Activities Organization concerns Primary Activities Suppliers Training and Legal Considerations ASPs,Data Storage, Cookies, Data mining/warehousing, IT Infrastructure Purchasing concerns Organization Recall Prefs Distribution Banner Ads Screen Design Online Promo Email Coupons E-Newsletter Pricing Linking Help Desk w/ web DB Order status/history Message Boards Reminders Loyalty