Multichannel marketing : An experiment on leading citizens to online public services

Multichannel marketing : An experiment on leading citizens to online

public services

Marije Teerling Telematica [email protected]

www.kanaleninbalans.nl

Willem Pieterson University of [email protected]

mailto:[email protected]

http://www.kanaleninbalans.nl/

mailto:[email protected]


Channels in Balance | Research background

• Government Multichannel management

• Partners: national government agencies, ministries, local government, universities

• Basic principle:– Citizens’ are able to choose their preferred channel

• Key topics– Channel synchronization: how to realize consistent information for

customers across channels and services– Channel marketing: how to entice customers into using the most cost

efficient channel given their problem (usually the electronic channel)


Multichannel marketing| Trends & developments

• ’90 introduction new (digital) service channels• Digital channels efficiency, lower costs

• Citizens still mainly use the traditional channels!

• How can governments lead citizens to the online public services?

13%19%30%14%Post (and/ or Fax)

24%13%25%24%Internet28%28%55%54%Phone33%46%48%55%Front Desk

The Netherlands

AustraliaCanadaSwitzerlandCountryChannel

13%19%30%14%Post (and/ or Fax)

24%13%25%24%Internet28%28%55%54%Phone33%46%48%55%Front Desk

The Netherlands

AustraliaCanadaSwitzerlandCountryChannel


Multi-channel marketing | Examples of instruments

Singapore eCitizen helpers

Municipal Rescricted access to the front desk

Land registry (office) Online prices lower than offline prices


• Four categories of instruments

• Citizens prefer soft instruments, like communication and web service offering

• Strong correlations between ‘positive’ instruments

• Citizens do not favor compulsory or discriminatory instruments

• Effectiveness instruments is unclear

Communication web service

(CWS)

Legal / Distribution

(LED)

PriceWeb services

(PWS)

WebService

Offering (WSO)

.05

.26

.03

.39.62

.34

Multichannel marketing instruments | Citizens’ preferences

Teerling and Pieterson (2008)


Objective

So:• Citizens continue to use digital channels.• Service provision through digital channels can be more cost efficient.• Citizens & governments seem to favor softer instruments like

communication.• Lack of clarity on the effectiveness of multichannel marketing

instruments.

Our objective:• To determine the effectiveness of communication – specifically through

a personal letter – in 1. influencing citizens’ choice of channel and 2. its effects on citizens’ perceptions of service delivery


Multichannel marketing | Field experiment with the SVB

• Field experiment with Dutch government agency responsible for pensions and child benefit (SVB)

• First time a citizen submits a claim for child benefit

• 2nd – xth child fully automated

process

• Goal: ensure all citizens who are entitled to child benefit receive it as soon as possible

• 2x2 field experiment• Procedure

– Current– Experimental

• Group– Experimental branch offices– Control branch offices


Experiment | Apllication procedure for child benefit

MBR

SVB

Bi-weekly mailing (3000 ex.)

Mailing company

System filled

Internet applicationis online

Letter & form

Application ofDigiD

Internetform

Form sendby mail

SVB judges application

Informcitizen by

mail

Citizen

(1)

(2)

(3)

(4)(5)

(6)

(7) (8)(9)

Standard procedure: •Citizens receive a letter and a pre-completed form

Experimental procedure: •Citizens receive a letter indicating them to go online


Experiment | Data collection

• Data collection period: June 2008 during two bi-weekly periods


Experiment | Data collection | Measurements

Measurement before experiment• Average number of claims

through each channel (post versus website)

• Number of letters sent June 2007

Measurement during/after experiment• Number of claims through each

channel for each group• Number of citizens in the

experimental group that call for a form

• Survey amongst citizens in both groups measuring their perceptions with respect to the SVB and the procedure for claiming child benefits


Experiment | Results | Channel of application

% ApplicationsExperimental offices

% ApplicationsControl offices

Office Post Website Not Office Post Website Not

Deventer 11,1 82,3 6,6 Utrecht 57,7 38,9 3,4

Nijmegen 13,5 81,7 4,8 Groningen 60,9 36,8 2,3

Rotterdam 13,0 76,2 10,8 Leiden 59,6 39,3 1,1

Roermond 9,5 80,5 10,0 Breda 65,4 32,4 2,1

Zaandam 11,5 79,8 8,6

Average 11,7 80,1 8,2 Average 60,9 36,8 2,2

Channel of application before the experiment:•63% applied through post (equal for control and experimental offices)•37% applied through the website


Experiment | Results | Forms requested by phone

• 333 citizens in the experimental group contacted the SVB to request a form

• Reasons to request a form:– About 40% did not have access to the internet

• 33.8% have no access at all• 7.7% temporarily did not have access

– DigiD• 15% did not have a DigiD• 20% got stuck using it

– Other obstacles• Clumsiness in using the internet• Language problems• Technical problems on the website


Experiment | Results | Citizens’ perceptions | The letter

• Respondents are similar in their view of the letter, regardless of which they received.

• In both conditions respondents were equally pleased with their choice of channels.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

EG: Overall

CG: Overall

EG: Tone

CG: Tone

EG: Message

CG: Message

Bad Neutral Good Excellent


Experiment | Results | Citizens’ perceptions | The procedure


Experiment | Results | Citizens’ perceptions | Satisfaction


Experiment | Results | Demographics

• Average age is 31.89 – Is the approximate average in the Netherlands for women to have their first

child• Gender

– Women are more likely to apply through post than men• Experimental group: 16.4% versus 10.7%• Control group: 26.2% versus 20.8%

– Men are more likely to apply through the website than women• Experimental group: 49% versus 39.8%• Control group: 19.5% versus 17.6%

• Education– % of elementary or high school educated citizens is highest in the

experimental group applying through phone & post (resp. 26% and 46%)– % of college educated citizens is highest in the control group and

experimental group applying through the website (resp. 47% and 42%)


Experiment | Conclusions

• Adoption literature indicates the following crucial aspects for adoption:– a well-functioning web service– increasing awareness of e-services– showing that the e-services provide more value than services offered through the

traditional channels– building trust

• Citizens who called for a form:– Lacked trust (in themselves and DigiD)– Got stuck well-functioning web service

• By increasing awareness of the e-service through a simple letter– Advantage of the web over the other channels was reached by leaving out the

pre-completed form– Usage was practically doubled– Respondents still felt they had a sufficient choice of channels


Experiment | Conclusions

• Customer groups– Digital divide (based on education level) still needs attention

• Governments should carefully consider– Implementing a recall mailing possibly with the pre-completed form– Keep website functioning at all times– Make e-services as simple as possible– Improve the identification procedure (DigiD)

• SVB management was advised to implement the experimental procedure as the standard.


Multichannel Marketing| Future research

• Communication as information or as propaganda

• Effectiveness of the other instruments / combinations of instruments

• Removing barriers to internet use

• Further research within the project Kanalen in Balans– Qualitative study for the Dutch Ministry of Internal Affairs – New smart forms of communication @ SVB– Training & self-service technology @ IBG– From channel choice research to defining a multichannel marketing plan @

3 Dutch municipalities– Improving the web channel (chat function) @ UWV

HICSS – 42January 5 – 8, 2009

Q

Documents

Multichannel marketing : An experiment on leading citizens to online public services