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www.ulst.ac.ukwww.ulst.ac.uk
www.ulst.ac.ukwww.ulst.ac.uk
www.ulst.ac.ukwww.ulst.ac.uk
Building Relationships OnlineBuilding Relationships Online… the road ahead or the road less travelled by?the road ahead or the road less travelled by?
Joe PassmoreHead of Corporate MarketingHead of Corporate Marketing
University of UlsterUniversity of Ulster
www.ulst.ac.ukwww.ulst.ac.uk
University web development is at a fork in University web development is at a fork in the road...the road...
Two roads diverged in a wood, and I –
I took the one less traveled by,
And that has made all the difference.(The Road Not Taken, Robert Frost)The Road Not Taken, Robert Frost)
… … to carry on or to move to a new to carry on or to move to a new paradigmparadigm
www.ulst.ac.ukwww.ulst.ac.uk
Some features of University web Some features of University web sites...sites...
• Lack of segmentation - mass market approach• Each visitor sees the same information• Information flow is one way…• No systematic data capture – plenty of hits• HITS - ‘How Idiots Track Success’• What is the transaction?• How do we measure it?
www.ulst.ac.ukwww.ulst.ac.uk
What value is your website adding to your university’s
activity?
The Unanswered QuestionThe Unanswered Question
www.ulst.ac.ukwww.ulst.ac.uk
Why do you have a website?Why do you have a website?
• Because you can?Because you can?
• Technology seduction, the ‘19th Hole’ Technology seduction, the ‘19th Hole’ syndromesyndrome
……or is your site built on customers’ or is your site built on customers’ expectation and requirements?expectation and requirements?
• What do they want?What do they want?
• Ask them!Ask them!
www.ulst.ac.ukwww.ulst.ac.uk
Critical Success FactorsCritical Success FactorsCSFCSF CriteriaCriteriaStrategic PlanningStrategic Planning Clearly defined business goals; analysis Clearly defined business goals; analysis of of
customercustomer needs and expectationsneeds and expectations
Web Design/ProductionWeb Design/Production Professional design and structureProfessional design and structure
Organisational StructureOrganisational Structure Integrated with other activity; isolation leads Integrated with other activity; isolation leads and and IntegrationIntegration to ‘electronic brochure’; professional managementto ‘electronic brochure’; professional management ofof emailemail
Internet MarketingInternet Marketing Proactive in inviting users to register interests; one-Proactive in inviting users to register interests; one- to-one to-one communication; customized informationcommunication; customized information
Measurement CriteriaMeasurement Criteria Payback may come in offline activity; monitor likesPayback may come in offline activity; monitor likes and and dislikes of site; ensure realistic targets and cleardislikes of site; ensure realistic targets and clear measurement criteriameasurement criteria
Based on Pira Research, McGurranBased on Pira Research, McGurran
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Critical Success Factors cont’dCritical Success Factors cont’d
• Know your customers
• Segmentation issues - who sees what and why?
• The building of valuable relationships online with customers
• What is value?
• Repeat visit to see relevant information
www.ulst.ac.ukwww.ulst.ac.uk
Relationship Marketing
““Marketing is to establish, maintain and enhance… Marketing is to establish, maintain and enhance… relationships with customers and other partners at a profit relationships with customers and other partners at a profit so that objectives of the parties are met. This is achieved by so that objectives of the parties are met. This is achieved by a mutual exchange and a fulfillment of promise”a mutual exchange and a fulfillment of promise”
Christian Gronroos, 1994Christian Gronroos, 1994
or, put more succinctly...or, put more succinctly...
“ “An elaborate form of database marketing”An elaborate form of database marketing”Brodie et al, 1997Brodie et al, 1997
www.ulst.ac.ukwww.ulst.ac.uk
• Properly applied it and used it can be used to gather Properly applied it and used it can be used to gather unprecedented amounts of data on specific customer unprecedented amounts of data on specific customer needs and therefore have a positive impact on customer needs and therefore have a positive impact on customer serviceservice
• A new marketplace where customers will choose to give A new marketplace where customers will choose to give organizations information about themselves… consumers organizations information about themselves… consumers may choose to be more selective about the type of may choose to be more selective about the type of information they leave on websitesinformation they leave on websites
...not just a more powerful customer but a more ...not just a more powerful customer but a more complete implementation of the marketing conceptcomplete implementation of the marketing concept
Hoffman and Novak, (1996)Hoffman and Novak, (1996)
Some background
www.ulst.ac.ukwww.ulst.ac.uk
Some relationship marketing issuesSome relationship marketing issues• Customer satisfaction as intention to Customer satisfaction as intention to
repurchaserepurchase• The longer a relationship lasts the more The longer a relationship lasts the more
profitable it becomesprofitable it becomes• Each time a visitor returns to a site they see the Each time a visitor returns to a site they see the
same thing - unacceptablesame thing - unacceptable
Every time you go to the bank they don’t ask you Every time you go to the bank they don’t ask you to open a new account!to open a new account!
However, they might try to sell you additional However, they might try to sell you additional products based on your profileproducts based on your profile
www.ulst.ac.ukwww.ulst.ac.uk
Building relationshipsBuilding relationships
• Data gathering online and offline
• Integration between online and offline activity
• Building affinity - lifetime email addressUniversity as ISP - partnership with other
providers
Portal becomes a delivery channel for information, course updates, news appeals etc
www.ulst.ac.ukwww.ulst.ac.uk
University site segmentation
Site segmentation
A series of portals for different users
Intranet Internet Extranet
Student Intranet Business Site Admissions/applications site
www.ulst.ac.ukwww.ulst.ac.uk
Site ObjectivesSite Objectives
• Generate leadsGenerate leads
• Educate a target audienceEducate a target audience
• Provide customer serviceProvide customer service
• Attract repeat visitors/repeat purchaseAttract repeat visitors/repeat purchase
• Track visitors & lead them to actionTrack visitors & lead them to action
• Encourage visitors to leave informationEncourage visitors to leave information– can facilitate interactivity/cross selling e.g. Amazon.comcan facilitate interactivity/cross selling e.g. Amazon.com
– raises ethical issues and data protection issuesraises ethical issues and data protection issues
– The primacy of the customerThe primacy of the customer
www.ulst.ac.ukwww.ulst.ac.uk
www.ulst.ac.ukwww.ulst.ac.uk
www.ulst.ac.ukwww.ulst.ac.uk
www.ulst.ac.ukwww.ulst.ac.uk
www.ulst.ac.ukwww.ulst.ac.uk
www.ulst.ac.ukwww.ulst.ac.uk
www.ulst.ac.ukwww.ulst.ac.uk
www.ulst.ac.ukwww.ulst.ac.uk
www.ulst.ac.ukwww.ulst.ac.uk
www.ulst.ac.ukwww.ulst.ac.uk
Technology assimilationTechnology assimilation
• Experimental applicationsExperimental applications– Prototype scientific applicationsPrototype scientific applications
• Efficiency/Convenience applicationsEfficiency/Convenience applications– Technology used to same work as currently being done but Technology used to same work as currently being done but
more conveniently/at less costmore conveniently/at less cost
• Effectiveness applicationsEffectiveness applications– Old problems addressed in new with better resultsOld problems addressed in new with better results
• ‘‘Previously unthinkable’ applicationsPreviously unthinkable’ applications– With the required literacy, truly innovative exploitation occursWith the required literacy, truly innovative exploitation occurs
www.ulst.ac.ukwww.ulst.ac.uk
Experimentall
Efficiency/
Convenience
Effectiveness
“Previously
Unthinkable”
Stages of Technology Assimilation (Haeckel, 1985)Stages of Technology Assimilation (Haeckel, 1985)
www.ulst.ac.ukwww.ulst.ac.uk
High Level
of ECom
High Level
of RM
Low Level
of ECom
Experimental Efficiency/
Convenience
Effectiveness “Previously
Unthinkable”
Commitment
Expansion
Awareness
No awareness
Exploration
Low level of RM
UniversitiesUniversities
www.ulst.ac.ukwww.ulst.ac.uk
University marketing - beyond 2000University marketing - beyond 2000• Increasing emphasis on one-to-one Increasing emphasis on one-to-one
communication - building relationshipscommunication - building relationships
• Developing mechanisms for data captureDeveloping mechanisms for data capture
• Introduction of call centres - Plymouth, NewportIntroduction of call centres - Plymouth, Newport
• Use of databases for content managementUse of databases for content management
• Greater integration of online & offline activityGreater integration of online & offline activity
• Increased use of ‘Print on Demand’Increased use of ‘Print on Demand’
• More targeted communicationsMore targeted communications
• Look out for the Data Protection Act!Look out for the Data Protection Act!
www.ulst.ac.ukwww.ulst.ac.uk
Know the road ahead...Know the road ahead...
‘‘Would you tell me please which way I ought to go Would you tell me please which way I ought to go from here?’from here?’
‘‘That depends a good deal on where you want to get That depends a good deal on where you want to get to,’ said the Cat.to,’ said the Cat.
‘‘I don’t much care where –’ said AliceI don’t much care where –’ said Alice
‘‘Then it doesn’t much matter which way you go,’ Then it doesn’t much matter which way you go,’ said the Cat.said the Cat.
‘‘- so long as I get somewhere,’ Alice added as an - so long as I get somewhere,’ Alice added as an explanation.explanation.
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Last words...
• Segmentation
• Personalization
• Relationship
• Affinity
• Loyalty
www.ulst.ac.ukwww.ulst.ac.uk
Selected readingBerthon P, (1996) Marketing Communications on the World Wide Web, Berthon P, (1996) Marketing Communications on the World Wide Web, Business HorizonsBusiness Horizons, Vol 39, , Vol 39,
No 5, pp24-33No 5, pp24-33Cornforth SR and Koty W, (1996) Untangling the Web: It takes more than hits to evaluate your Cornforth SR and Koty W, (1996) Untangling the Web: It takes more than hits to evaluate your
site’s successes or troubles, site’s successes or troubles, Currents Currents July/August pp 10-16July/August pp 10-16Dwyer FR, Schurr PJ and Oh S (1987) Developing Buyer-Seller relationships, Dwyer FR, Schurr PJ and Oh S (1987) Developing Buyer-Seller relationships, Journal of MarketingJournal of Marketing, ,
Vol 51, No 2 pp 11-27Vol 51, No 2 pp 11-27Gronroos, C (1994) Quo Vadis Marketing? Towards a relationship Marketing Paradigm, Gronroos, C (1994) Quo Vadis Marketing? Towards a relationship Marketing Paradigm, Journal of Journal of
MarketingMarketing, Vol 10, pp347-360, Vol 10, pp347-360Haeckel SH, (1985) Strategies for Marketing the new technologies: commentary, Haeckel SH, (1985) Strategies for Marketing the new technologies: commentary, Marketing in an Marketing in an
Electronic AgeElectronic Age, Buzzell RD ed, Harvard Business Press, Buzzell RD ed, Harvard Business Press
Hoffman D and Novak TP, (1996) A new marketing paradigm for Electronic Commerce, paper Hoffman D and Novak TP, (1996) A new marketing paradigm for Electronic Commerce, paper submitted for The Information Societysubmitted for The Information Society
Hoffman D and Novak TP, (1996) Marketing in hypermedia computer mediated environments: Hoffman D and Novak TP, (1996) Marketing in hypermedia computer mediated environments: conceptual foundations, conceptual foundations, Journal of MarketingJournal of Marketing Vol 60, pp50-68 Vol 60, pp50-68
McGurran P (1997) Web Europe, McGurran P (1997) Web Europe, Internet BusinessInternet Business, May 1997, pp28-31, May 1997, pp28-31
Rogers, EM (1983) Rogers, EM (1983) Diffusion of InnovationsDiffusion of Innovations, 3rd Edition, The Free Press New York, 3rd Edition, The Free Press New York
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www.ulst.ac.ukwww.ulst.ac.uk