Transcript Building Loyalty

The Marketing & Promotional Plan
Brand Building and Marketing Online
64157 電子商務模式設計與應用
國立中山大學企管所
2002 Spring, Week 7-4
太世科網路行銷公司
TASKCO Corporation
[email protected]
886-2-8772-2583
黃光彩 博士
太世科公司
2002/05/11
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CONFIDENTIAL
Pull Versus Push
Traditional marketing = PUSH / ‘interruptive’
Online = PULL
Online environment = active medium
People use internet to DO something
Online marketing = recommendation of usefulness
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The Brand Experience
The online brand = experience of brand
Web site IS the brand
Judgement based on experience of brand
Companies can help to develop feelings in and
around their brand
Add a ‘human touch’ in the computer
environment
Only one chance to create a favourable
experience
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Traffic and Brand Value
Smart browsing
Traffic as value
Traffic through visibility
•Domain branding
•Managing your portal presence
•Publicity and word of mouth
Paying for traffic
•Alliance and co-branding
•Online ads
Evaluating traffic sources
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Smart Browsing
Surf Engines –
• Using personalization techniques to help to solve the question of
where to go next.
• Aimed at making Web navigation easier.
• No engine can provide guidance to a newly created page.
Surf Engine Pioneer –
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Alexa Internet Services (www.alexa.com),
Founded in April 1996 by Brewster Kahle and Bruce Gilliat
Located in San Francisco.
Alexa works along with your browser to provide
information about
the Web page being viewed and
insight about the additional
places to visit.
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Features of Alexa Software System
Real Time Information provider.
•Using technologies of parallel computing – send new page address
back to Alexa system, then send new information to users’ computer.
•Keeping a database of Web-surfing behavior.
•Using data mining techniques – recognize usage patterns, help to guide
users to their desired information.
•Interactive – Click trails are combined with user rankings of web-page
quality. Behavior and Rankings.
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Defining the Strategy
WHO are the site’s target audiences?
WHERE can these target audiences be reached?
HOW can they be most effectively reached?
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Initial Activities: Offline Integration
Books
18%
Print
39%
TV Ads
20%
10th GVU
Biannual Study
Email Sig
Files
23%
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Initial Activities: Search Engines
1 in every 28 page views on the entire web is a search
engine results page
Most widely travelled path on the net in march ’99 was
from home.microsoft.com to www.altavista.com
85% users find web sites through search engines
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Initial Activities: Search Engines
70
60
50
Web site promotional methods ranked by US B2B web
sites
66
54
40
42
30
40
37
20
10
0
Search
Engine
Positioning
Email
Print
Brochures
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Print
Trade Shows
Catalogues
CONFIDENTIAL
Initial Activities: Directories
Directories compiled by humans, not ‘robots’
Takes time and patience to get listed – often 2-3 months at the
least
But worth the wait: in Dec ’99 alone, yahoo! Had over 32 million
visitors
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Increasing Awareness: Reciprocal Links
88% of users find new sites this way
Reciprocate with good quality, non-commercial information sites
Reciprocal links can help develop a positive brand experience
Some search engines use the number of sites linked to a
submitted site as a ranking mechanism
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Increasing Awareness: Advertising
IAB’s ‘advertising effectiveness study’
Online advertising can increase:
– Advertisement awareness
– Brand awareness
– Product attribute communication
– Purchase intent
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Increasing Awareness: Affiliate programmes
Only pay for performance
Reward: per click through
per lead
per sale
Online-only retailers generated 6% of their revenues from
Affiliate Programmes
Cross promotional partnering
Online / offline promotional integration
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‘Hairy’
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Traffic Value and Scarcity
Value is based on scarcity of supply, not
necessarily benefits
The supply of web content is growing
faster than the number of users
While the volume of online material
provides ever-increasing value to network
users, the battle for attention is severe
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CONFIDENTIAL
Building Web Traffic
Any Web site must attract visitors. The best
designed and implemented Web site is useless if no
one shows up!
The biggest challenge facing Web marketer is getting
visitors to their site.
Traffic building tools :
•
•
•
•
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Advertising
Links
User habits
Word of mouth
Surf engines
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Build Traffic
Search &
Domain
• Acquiring traffic is
Directory
Name/Brand
expensive
• And critical to Web
marketing success
Destination Site
• Make the site easy to
find by new users
- Domain name
Publicity
External Links
- Search & Directory
- Publicity
Paid Advertising
- External Links
Sources of Traffic
- Advertising
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How to Develop Traffic?
Developing Traffic Requires Value
• Visit duration is the online equivalent to time in a store
• Long visit duration allows:
- More time to communicate the message of the site
- Additional opportunities to engage in commerce
- More chances to build commitment and loyalty
- Exposure to more advertising or alliance partner
impression
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Net Word-of-Mouth Technologies
E-mail among friends and biz acquaintances
Usenet groups
E-mail listservs
AOL and other online forums
Industry portal discussion areas
Online and traditional media coverage of the Net
The Net amplifies the power and
accelerates the speed of user feedback
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Option Leaders Online
Opinion leaders are well-respected industry
participants journalists, or lead users known for
expertise
Reaching opinion leaders is a key success factor of
an e-commerce strategy
Opinion leaders can be reached via e-mail and
social networks
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URL Placement
• Integrate your domain name wherever possible
- Manuals, warranties, software programs
- Familiar advertising settings
• Billboards, buses, bills, company brochures, radio
advertisements, public speeches, menus in
restaurants, park benches, shopping bags
• To track which medium is driving traffic
- Use unique identifiers
- Use different Web addresses with different media
messages
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Interactive Advertising
Banner ads are the dominant form of online
advertising
- Clickable graphic images that take a user to another Web location
Pricing is usually based on the number of
impressions
- Negotiated prices, volume discounts, and barter arrangements are
common
- Each banner also carries a unique identifier
– This allows a business to track the effectiveness of each placement
in generating traffic
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Retaining Traffic
• Retaining traffic is profitable
• Site loyalty dramatically lowers the cost of maintaining
web site traffic
• Fewer new users must be attracted to maintain a
profitable user base
The Value of Loyalty in Building Traffic
Montly
Retention Rate
100%
Advertising Cost
Time Needed to Reach
100,000 Active Users
$70,000
2.5 months
95%
$80,000
3 months
90%
$100,000
4 months
85%
$140,000
6 months
80%
$380,000
19 months to exceed 99K
75%
**
Can't reach
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Building Loyalty
It costs 5 times more to sell to a new customer
than to sell to an existing customer
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Building Loyalty: Email
Email = interactive and measurable
Content, Click through and Conversion can be measured and
effectiveness of campaign plotted
One-to-One marketing:
- profiling
- segmentation
- tailored communication
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Building Loyalty: Site Personalisation
Users visit personalised pages three times more often
Response rate can increase to 10-30% from 2-4%
ROI for personalisation can be up to 300%
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Building Loyalty: Site Personalisation
Scenarios where personalisation can be beneficial:
One product / service geared to more than one target market
One target market and several products / services
More than one target market and several products / services
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Building Loyalty: Site Personalisation
Types of personalisation:
–Personalised information
–Personalised web experience
–Personalised service
–Personalised community
–Personalised cross selling
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Building Loyalty: Little Things
Reward loyalty
Make a visitor feel valued
Create a positive brand experience
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Conclusions
Web sites need to be marketed to benefit from the
investment made
The methods used need to be appropriate for the
strategy, defined by WHO and WHERE
A positive brand experience is crucial in promoting
loyalty
Judgements are made depending on how people FEEL
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Waking Up Customers with Personalization
Introduction
Successful Use of Personalized Direct Mail
Future Plans
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L L Bean
Select Comfort The leading vertically-integrated manufacturer, specialty retailer
and direct marketer of premium quality, innovative air beds.
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“Personalized comfort and support”
320+ major mall stores nationwide
Database of 5 million owners & inquirers
Four-fold sales growth in last 5 years
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Personalization Overview
Prospects
Inquiries
Owners
Mall Location
Call to Action
“Discovery Information”
Financing Pre-Approval
Survey Results
Original Bed Purchase Info
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Prospect Lists
Personalize Closest Mall Location
Also Include Directions to Mall
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Inquiries - Personalized CTA
Targeted versioning of most productive call to
action
–800#
–Store location
–Both
Inquiries segmented by channel preference
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Inquiries - Direct Call to Action
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Inquiries - Retail Call to Action
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Inquiries - Dual Call to Action
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Inquiries - Personalized CTA
Targeted versioning of most productive
call to action
–800#
–Store location
–Both
Inquiries segmented by channel
preference
24% response gain!! (dual vs single CTA)
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Inquiries - Customer Information
Use information gathered in the “discovery
process” to personalize the marketing message
Make sure it’s relevant
–type, age of current bed
–sleep issues
–feature of interest in SC bed
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Inquiries - Customer Information
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Inquiries - Customer Information
Use information gathered in the “discovery process” to
personalize the selling message
Make sure it’s relevant
– type, age of current bed
– sleep issues
– feature of interest in SC bed
Double digit gains in response rates!!
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Inquiries - Sleep Survey Results
Gather sleep survey data from inquiries
Take problem/solution approach to direct mail
via personalization
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Inquiries - Sleep Survey Results
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Inquiries - Sleep Survey Results
Gather sleep survey data from inquiries
Take problem/solution approach to direct mail
via personalization
Include collateral material in package that
speaks to their specific sleep issue
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Future Plans for Personalization
New Movers
Back Pain Sufferers
“Sleep Numbers”
The sky is the limit!!
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Business Intelligence Challenge
Who are my most/ least profitable customers and
products ?
To whom should I address my marketing action/
campaign ?
What are the sales performances of this period
with respect to my objectives and with respect to
the same period last year?
Which are currently my best performing products
in Germany ?
Which customers are about to churn, who are
frauding ?
At what price should I sell my service/ product in
Geneva ?
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Existing Barriers
Data profusion, redundant and
incoherent
Data incomplete and of bad quality
Culture for data transparency
Technology islands
Rapidly changing strategies and
environment
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BI Definition and Map
Draw the map to find your way to
success
Business Intelligence is a set of
concepts and methodologies to
improve decision making in business
through use of facts or fact- based
systems
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Three Cornerstones of Business Intelligence
Collect Data
Extract Data from:
Legacy Systems
ERP ’s
E- Business systems
Archives
External sources
...
Prepare &
Store Data
Data Staging:
Quality control
Integration & enrichment
Historization
Pre- aggregation
Model transformation
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Analyze
Data
Data Visualization:
OLAP
EIS, MIS
Standard Reporting
Data Mining
Forecasting, Simulations
CONFIDENTIAL
Examples of Business Benefits
More Effective Decisions
• On- line indicators of business trends and ratios
• Deep analysis capabilities down to single
transaction
Greater Customer Insight
• Fact based segmentation
• Campaign success analysis
Greater Profitability
• Resource optimization
• Identification of most profitable customers
• Defect ratio reduction
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BI Architecture
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BI Market Overview
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What is the future?
Real- time solutions and full
integration with operations
Collaborative BI and Workflow
Integration
Mobile Business Intelligence
Strategic Business Intelligence
competence center
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Envision
We help you define your strategy at all business
levels and the tools to report, follow and analyse
your key figures
Key Service Offerings:
• BI Strategy and objectives
• Is Analysis of the available Data,
Systems and Processes
• Identify a set of most-promising BI
solutions
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Design
Design is the time where the success of the
solution is drawn
Key Service Offerings:
• Architecture Design
• Product Selection
• Project Organization
• Business Process &
• Organization Design
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Delivery
With our partner or based on standard
technologies, we are always able to find a
solution that fits your needs
Key Service Offerings:
• Product Integration
• Data Processing (ETL)
• Reporting, EIS & OLAP
• Data Mining
• Web Reporting and Analysis
• Clickstream Analysis
• ...
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Improve
Business Intelligence is strongly dynamic and
sensitive to all changes in company systems,
processes and strategy
Key Service Offerings:
• New Data Marts
• Data Mining
• Optimization
• Audit
• New data sources
• integration
• ...
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Financial and Accounting Reporting in a
large Bank
Monthly Reporting
•
•
•
•
Profit and Loss
Reporting at Regional level
Group Statement
Corrections
Reporting at National Bank
• Capital Resources
• KMU Information
Optimization of needed Capital
Resources
Ensure Reporting Obligations
• Extern & intern financial audit
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Key Success Factors
Performance and parallelization to
perform the processing for the 7th of the
month
Ensure Data quality and coherence
Preserve existing investment in systems
and personnel
Continuous improvement and
evolutions
Coordination with other systems
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Application References
UBS: Data processing for Financial and Accounting
Reporting
Postal : Data Mart for Database Marketing
U. S. Multinational : Sales performances cockpit
Concordia: Enterprise Data Warehouse with 3 Data Marts
and
Performance Management Cockpit (Balanced Scorecard)
PM: Data Mart for R& D Activity Reporting
SBB: Data Mart for Train Punctuality Follow- up and
Reporting
SBB: Data Mart for the Global Performance Cockpit
Nestlé: Data Mart for Travel Expenses Reporting
Genilem: Reporting of WEB Site visitors
...
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CONFIDENTIAL
Top 10 U. S. largest Multinationals
Sales and Quotas Follow- up
Solution Business Issue
• Follow- up sales on a day-today basis
Client Value Delivered
• Consistent rules of Business
Tracking across Countries &
• Business Units Sales
reporting for Country
Managers
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Post Services
Sales and Quotas Follow- up
Solution Business Issue
Identify most profitable
customers and products
Client Value Delivered
Marketing campaigns
Sales reporting
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