Seminar Channel Choice and Channel Management: From Theory to Practice March 26, 2009 University of Twente

Importance of the Topic A choice problem for users: ever more channels are available, some of them new A choice problem for suppliers and service providers: ever more channels available, some of them attractive, others not How to manipulate and manage channel choice: is it possible? Scientific problem, particularly for communication scientists: how and under which conditions do people choose channels?

Channel Behavior Channel choice: the picking of the channel at a certain moment Channel usage: the aggregated use (long term)

Channel Strategy and Management in Public Service Provision Prof. Dr. Jan van Dijk University of Twente

Topics for this Presentation Why a Channel Strategy is needed Common goals for channel strategies Parallel strategy Replacement strategy Supplemental strategy Integration strategy Integration between separate channels? Conditions for the implementation of an integration strategy Multichanneling in the organization

Why a Channel Strategy is Needed Differentiation of service needs and situations in society The growing number of channels or media people can choose Increasing networked character of these channels (coordination required) Redivision of government organization (to realize one-stop service delivery etc.)

Common Goals for Channel Strategies Effectiveness of service provision (reaching the right clients with the right means) Efficiency (costs and gains) User/Citizen satisfaction with services Access for all Being innovative or ‘modern’

Four Channel Strategies NrNameExplanation 1Parallel strategy Channels are positioned next to each other. Citizens are free to choose their channels and services are available through each channel. 2Replacement strategy Channels can replace each other. Assumption is that channels can be superior or inferior to each other. Customers would prefer to use the best channel and therefore one channel (e.g. digital) would replace another (e.g. non- digital)

Multi-channel Strategies (expicit relation between channels) NrNameExplanation 3Supplemental strategy Channels have supplemental values; each channel has it’s own characteristics that makes them suitable for certain types of services. Therefore, governments should offer services via the best suited channels. 4Integration strategy All channels are integrated in the entire service delivery process. This means that all services are offered via all channels, but that strengths and weaknesses of channels are used in their design. Citizens are guided to the ‘ best’ channels and channels seamlessly refer to each other.

Parallel Strategy TIME: the oldest strategy; makes a come-back in the last 5 years ADVANTAGES - access for all - effective: channels develop their own strengths DISADVANTAGES - very costly and inefficient - no innovation and no redivision of services RIGHT IDEA - users and service providers have channel preferences WRONG IDEA - every channel is able to deliver all services with a high quality

Replacement Strategy TIME: the 1990s: the rise and hype of the Internet ADVANTAGES - stimulus for innovation - long term: might become very efficient DISADVANTAGES - no access for all (physical access, skills, usage pref.) - short term: not efficient (investment needed; burdening all other channels) RIGHT IDEA - digital channels might improve to cover ever more needs WRONG IDEA - that old channels will disappear; service desks will remain ‘forever’

Supplemental Strategy TIME: after the Internet hype; launched by the commercial service sector ADVANTAGES - might be very effective: right means for right clients - might be very efficient (not all channels used) DISADVANTAGES - access: users are forced to use particular channels on particular occasions - users do not always choose the ‘right’ channel RIGHT IDEA - the combination of channels for their strong characteristics WRONG IDEA - that users can be forced

Integration Strategy TIME: the present: multi-channeling as a way for service integration and redivision of services ADVANTAGES - combines the advantages of parallel and supplemental strategies: all services in all channels available, but users are (re)directed - innovative (integration) and ultimately efficient DISADVANTAGES - requires user knowledge and registration that currently are not available in (Dutch) government – short term: not efficient (investment needed) RIGHT IDEA -that users can be seduced to opt for the proper channel: usage is a question of learning WRONG IDEA - that channels can be integrated easily (basic differences in communication patterns)

Integration between Separate Channels? Call Center and Website? Future possibility (videophone window in sitepage), but requires much improvement of websites, otherwise not efficient Call Center and ? More likely (request of address and direct of particular web-page) Call Centre and Service Desk? More likely (direct appointment with desk via call) Website and Service Desk? Already available (appointment via digital counter) Service Desk and Website? Starting (reference to websites and assistance of those not skilled at or close to service desks

Conditions for the Implementation of an Integration Strategy All channels offer the same high quality service but increasingly digital channels offer more advantages for users (by innovation). User learning and ‘seduction’ to use the ‘proper’ channel: - Better quality of digital service (improvement of websites: their usability and interactivity) - information campaigns for the (proper) use of channels - tactical and appropriate reference to the better channel - assistance in approving digital skills.

Conditions for the Implementation of an Integration Strategy (2) Permanent user registration Informed and digitally skilled civil servants (information and communication managers) Information systems and databases that link front offices, mid offices and back offices. This requires Client Contact Centers connecting all channels with the same systems, databases and civil servants. This goes for both municipalities and national executive administrations

Multi-channeling in the Organization: Integration of Service Channels and Registrations Channels Front office applications Mid office Back office systems Client Contact Centre SERVICE perspective DATA perspective CONFLICT