IWMW 1999: Building relationships online

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


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


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?


What value is your website adding to your university’s

activity?

The Unanswered QuestionThe Unanswered Question


Why do you have a website?Why do you have a website?

• Because you can?Because you can?• Technology seduction, the Technology seduction, the ‘‘19th Hole19th Hole’’

syndromesyndrome……or is your site built on customersor is your site built on customers’’ expectation and requirements?expectation and requirements?

• What do they want?What do they want?• Ask them!Ask them!


Critical Success FactorsCritical Success FactorsCSFCSF CriteriaCriteriaStrategic PlanningStrategic Planning Clearly defined business goals; analysis Clearly defined business goals; analysis of customerof customer needs needs

and expectationsand 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 Integrationand Integration to to ‘‘electronic brochureelectronic brochure ’’; professional management; 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 dislikes of site; ensure realistic targets and clearand dislikes of site; ensure realistic targets and clear measurement criteriameasurement criteria

Based on Pira Research, McGurranBased on Pira Research, McGurran


Critical Success Factors contCritical Success Factors cont’’dd

• 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


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 so that objectives of the parties are met. This is achieved by a mutual exchange and a fulfillment of promiseby 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 marketingAn elaborate form of database marketing””Brodie et al, 1997Brodie et al, 1997


• 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 needs unprecedented amounts of data on specific customer needs and therefore have a positive impact on customer serviceand therefore have a positive impact on customer service

• 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


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 donEvery time you go to the bank they don’’t ask you 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


Building relationshipsBuilding relationships

• Data gathering online and offline• Integration between online and offline

activity• Building affinity - lifetime email address

University as ISP - partnership with other providersPortal becomes a delivery channel for information,

course updates, news appeals etc


University site segmentation

Site segmentationA series of portals for different users

Intranet Internet Extranet

i Student Intraneti Business Sitei Admissions/applications site


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


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


Experimentall

Efficiency/

Convenience

Effectiveness

“Previously

Unthinkable”

Stages of Technology Assimilation (Haeckel, 1985)Stages of Technology Assimilation (Haeckel, 1985)


High Levelof ECom

High Levelof RM

Low Levelof ECom

Experimental Efficiency/Convenience

Effectiveness “PreviouslyUnthinkable”

Commitment

Expansion

Awareness

No awareness

Exploration

Low level of RM

UniversitiesUniversities


University marketing - beyond 2000University marketing - beyond 2000• Increasing emphasis on one-to-one communication Increasing emphasis on one-to-one communication

- building relationshipsbuilding 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 Increased use of ‘‘Print on DemandPrint on Demand’’• More targeted communicationsMore targeted communications• Look out for the Data Protection Act!Look out for the Data Protection Act!


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,to,’’ said the Cat. said the Cat.

‘‘I donI don’’t much care where –t much care where –’’ said Alice said Alice

‘‘Then it doesnThen it doesn’’t much matter which way you go,t much matter which way you go,’’ said said the Cat.the Cat.

‘‘- so long as I get somewhere,- so long as I get somewhere,’’ Alice added as an Alice added as an explanation.explanation.


Last words...

• Segmentation• Personalization• Relationship• Affinity• Loyalty


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

sitesite’’s successes or troubles, 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 PressHoffman 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 SocietyHoffman 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, pp50-68McGurran P (1997) Web Europe, McGurran P (1997) Web Europe, Internet BusinessInternet Business, May 1997, pp28-31, May 1997, pp28-31Rogers, EM (1983) Rogers, EM (1983) Diffusion of InnovationsDiffusion of Innovations, 3rd Edition, The Free Press New York, 3rd Edition, The Free Press New York

IWMW 1999: Building relationships online

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