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Internet Marketing - PowerPoint PPT Presentation

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Internet Marketing Customer Support and Online Quality Involve Customers in Design Process Market & Sell Products & Services Understand Markets & Customers Deliver Value Through Distribution Manage Customer Information Provide Customer Care Marketing Processes That Can Be Digitized

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Internet marketing l.jpg
Internet Marketing

Customer Support


Online Quality

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Involve Customers in Design Process

Market & Sell Products & Services

Understand Markets & Customers

Deliver Value Through Distribution

Manage Customer Information

Provide Customer Care

Marketing ProcessesThat Can Be Digitized

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  • Solving problems online

  • Lower costs

  • Online quality

  • Justifying online enhancements

  • Co-production

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Providing Customer Care

Through Online Content

Lower Costs

Online Quality

  • Online Publishing

  • Electronic Distribution

  • Virtual Problem Solving

  • Customer Support

  • VVAs

  • Customer Support

  • Justifying Online Content

  • Enhanced Margin

  • Expanded Sales

    • Acquire new customers

    • Develop existing customer base

  • Customer satisfaction

    • Customer retention

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Solving Problems Online

Provides Strong Justification for Investing in the Web

  • Lower customer support costs

  • Improved online value for customers

  • Companies and consumers benefit

    • Lower costs improve profit margins

    • Savings can be passed through to consumers

Figure 6.3

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Solving Problems Online

  • Benefits are strongest for companies that are first to innovate

    • Increased market share

    • Improved customer satisfaction

    • Improved customer acquisition and retention

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Lower Costs

Figure 6.3

  • Cost savings from using the Internet to support customers are more measurable and controllable that many other customer support investments

  • These savings can be quite large

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Q: Where do these cost savings come from?

Cost Savings

  • Online publishing saves the cost of printing and shipping manuals

  • Software updates can be downloaded, saving the cost of burning and shipping CDs

  • Virtual problem solving

  • Inexpensive communication

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Virtual Problem Solving

  • Online solutions

    • Many companies practice call avoidance, making people log on instead

    • Difficult / impossible to find a phone # on the site

  • Stored answers

    • FAQ

    • E-mail auto-responders

  • Customers help each other

    • Bulletin boards

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Traditional Customer Service Methods Are Expensive

  • Sales calls and call centers

    • Require expensive, assisted, real-time interactions

    • Are labor intensive

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Inexpensive Web-Based Communication

  • Many of these methods do not require real-time intervention

  • Customers are able to solve their own problems

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Web-Based Customer Support

  • Merging e-mail, artificial intelligence, and smart routing shows promise

    • First: the system tries to find a stored answer

    • Second: the system tries to find the best customer service rep to handle the request

    • Third: the response becomes a part of the database

  • Over time, the database becomes richer and more inquiries can be handled automatically by the system

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So What?

Success on the Web is Becoming More & More About Customer Care

Provide Customer Care

Through Online Content

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Name of Publication - Date

Insert excerpts from a current article out of the business press (e.g. Wall Street Journal, Wired News, Business 2.0, or Fast Company) that talks about the importance of online customer support. I usually take excerpts out of the lead paragraph, and highlight keywords. There have been a number of articles talking about increased investments in online customer support.

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Customer Care

Q: How do you create a Nordstrom-like experience on the Internet?

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Online Quality Enhancements

  • Virtual value activities can improve quality

  • Companies have multiple constituencies

  • It’s possible to use the VVAs to design Web content that supports multiple customers and needs

    • Table 6.3

    • Figure 6.6

    • Figure 6.8

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Online Quality Enhancements

  • Effective use of the Web can increase customer satisfaction

  • Product design: online discussions provide early feedback that provide valuable insight and suggestions

  • Sales: consumers have access to online product information and dealer locations

  • After-sales support: self-help problem solving, technical support & user groups

  • Company culture: Web content communicates and reinforces corporate culture

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Product Design Satisfaction Driversand Online Methods

Table 6.4

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Sales Activity Satisfaction Driversand Online Methods

Table 6.5

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Justifying Online Enhancements

  • Two possible methods for justifying a firm’s investment in an online presence

    • Breakeven investment analysis

    • Customer-centered method, looking at customer acquisition, development and retention rates

  • Let’s take a closer look

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Breakeven Investment Analysis

Cost Focus vs. Quality Focus

  • Traditional customer support technologies

    • customer-support call centers

    • sales force help

    • dealers

  • Steep curve due to increasing difficulty of providing higher quality levels

Figure 6.10

The Cost-Quality Tradeoff for Traditional Support

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Breakeven Investment Analysis

Cost Focus vs. Quality Focus

  • Exceptional service not yet attainable using online only

  • Online content is low cost for basic levels of support

  • Costs rise rapidly at higher levels

  • Pure online support attractive for cost-oriented firms

Figure 6.11

Limited Quality

Pure Online Support

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Breakeven Investment Analysis

Cost Focus vs. Quality Focus

  • Hybrid systems combine online content and technical help from staff

    • Online material handles routine inquiries

    • Customer-support staff focuses on difficult issues

  • Staff also provide support to customers without access to online materials

  • Quality-oriented firms use

Figure 6.12

Creating a Hybrid High-Quality Support System

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Breakeven Investment Analysis

A Dynamic Implementation Path

  • Cost savings from migrating to an online support model free up funds to enhance customer support over the long run

  • Managers often opt to achieve hard savings first

  • Then use those savings to improve quality

Figure 6.13

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Customer Lifetime Value Analysis

Closed Loop Web Enhancements

  • Web marketing as direct marketing

  • The Internet’s digital nature make it possible to capture, store & manipulate huge amounts of data on individuals

  • Three activities related to marketing at the individual level

    • Customer acquisition

    • Customer development

    • Customer retention

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The ADR Framework

  • Acquisition: the cost of bringing in new customers

  • Development: costs incurred expanding the share-of-customer that firms receive from existing customers

  • Retention: costs to keep the business and loyalty of current customers

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  • A new view of the company and its customers as co-producers emerges when the Web is used in sophisticated ways to provide customer support

  • The customer is no longer a passive recipient of a product and some support material

  • Rather the customer is a partner

  • Closer links between companies and their customers provide opportunities for personalization and new product development