Multichannel marketing an experiment on leading citizens to online public services
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Multichannel marketing : An experiment on leading citizens to online public services. Marije Teerling Telematica Instituut [email protected] Willem Pieterson University of Twente [email protected] www.kanaleninbalans.nl. Channels in Balance | Research background.

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

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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 Instituut

[email protected]

Willem Pieterson

University of Twente

[email protected]

www.kanaleninbalans.nl


Channels in balance research background

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

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?


Multi channel marketing examples of instruments

Multi-channel marketing | Examples of instruments

Municipal Rescricted access to the front desk

Singapore

eCitizen helpers

Land registry (office) Online prices lower than offline prices


Multichannel marketing instruments citizens preferences

Multichannel marketing instruments | Citizens’ preferences

Communication

web service

(CWS)

  • 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

.39

.62

.05

Web

Service

Offering (WSO)

.03

.34

Price

Web services

(PWS)

Legal /

Distribution

(LED)

.26

Teerling and Pieterson (2008)


Objective

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

    • influencing citizens’ choice of channel and

    • its effects on citizens’ perceptions of service delivery


Multichannel marketing field experiment with the svb

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 childfully 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

Experiment | Apllication procedure for child benefit

  • Standard procedure:

  • Citizens receive a letter and a pre-completed form

  • Experimental procedure:

  • Citizens receive a letter indicating them to go online

Citizen

MBR

(1)

System

filled

Internet application

is online

Internet

form

SVB

(6)

(2)

Inform

citizen by

mail

Bi-weekly mailing

(3000 ex.)

Application of

DigiD

SVB judges

application

(3)

(7)

(8)

(9)

Letter &

form

Form send

by mail

Mailing company

(4)

(5)


Experiment data collection

Experiment | Data collection

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


Experiment data collection measurements

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

Experiment | Results | Channel of application

  • 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

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

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.


Experiment results citizens perceptions the procedure

Experiment | Results | Citizens’ perceptions | The procedure


Experiment results citizens perceptions satisfaction

Experiment | Results | Citizens’ perceptions | Satisfaction


Experiment results demographics

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

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 conclusions1

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

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


Multichannel marketing an experiment on leading citizens to online public services

HICSS – 42

January 5 – 8, 2009

Q


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