Building Relationships Online the road ahead or the road less travelled by? Building Relationships Online … the road ahead or the road less travelled by? Joe Passmore Head of Corporate Marketing University of Ulster

University web development is at a fork in 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 paradigm

Some features of University web 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 universitys activity? The Unanswered Question

Why do you have a website? Because you can?Because you can? Technology seduction, the 19th Hole syndromeTechnology seduction, the 19th Hole syndrome …or is your site built on customers expectation and requirements? What do they want?What do they want? Ask them!Ask them!

Critical Success Factors CSFCriteria Strategic PlanningClearly defined business goals; analysis of customer needs and expectations Web Design/ProductionProfessional design and structure Organisational Structure Integrated with other activity; isolation leads and Integration to electronic brochure; professional management of Internet MarketingProactive in inviting users to register interests; one- to-one communication; customized information Measurement CriteriaPayback may come in offline activity; monitor likes and dislikes of site; ensure realistic targets and clear measurement criteria Based on Pira Research, McGurran

Critical Success Factors contd 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… relationships with customers and other partners at a profit so that objectives of the parties are met. This is achieved by a mutual exchange and a fulfillment of promise Christian Gronroos, 1994 or, put more succinctly... An elaborate form of database marketing An elaborate form of database marketing Brodie et al, 1997

Properly applied it and used it can be used to gather unprecedented amounts of data on specific customer needs and therefore have a positive impact on customer serviceProperly applied it and used it can be used to gather unprecedented amounts of data on specific customer needs and therefore have a positive impact on customer service A new marketplace where customers will choose to give organizations information about themselves… consumers may choose to be more selective about the type of information they leave on websitesA new marketplace where customers will choose to give organizations information about themselves… consumers may choose to be more selective about the type of information they leave on websites...not just a more powerful customer but a more complete implementation of the marketing concept Hoffman and Novak, (1996) Some background

Some relationship marketing issues Customer satisfaction as intention to repurchaseCustomer satisfaction as intention to repurchase The longer a relationship lasts the more profitable it becomesThe longer a relationship lasts the more profitable it becomes Each time a visitor returns to a site they see the same thing - unacceptableEach time a visitor returns to a site they see the same thing - unacceptable Every time you go to the bank they dont ask you to open a new account! However, they might try to sell you additional products based on your profile

Building relationships Data gathering online and offline Integration between online and offline activity Building affinity - lifetime address University as ISP - partnership with other providers Portal becomes a delivery channel for information, course updates, news appeals etc

University site segmentation Site segmentation A series of portals for different users IntranetInternetExtranet Student Intranet Business Site Admissions/applications site

Site 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.com –raises ethical issues and data protection issues –The primacy of the customer

Technology assimilation Experimental applicationsExperimental applications –Prototype scientific applications Efficiency/Convenience applicationsEfficiency/Convenience applications –Technology used to same work as currently being done but more conveniently/at less cost Effectiveness applicationsEffectiveness applications –Old problems addressed in new with better results Previously unthinkable applicationsPreviously unthinkable applications –With the required literacy, truly innovative exploitation occurs

Experimental l Efficiency/ Convenience Effectiveness Previously Unthinkable Stages of Technology Assimilation (Haeckel, 1985)

High Level of ECom High Level of RM Low Level of ECom ExperimentalEfficiency/ Convenience EffectivenessPreviously Unthinkable Commitment Expansion Awareness No awareness Exploration Low level of RM Universities

University marketing - beyond 2000 Increasing emphasis on one-to-one communication - building relationshipsIncreasing emphasis on one-to-one communication - 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 DemandIncreased use of Print 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... Would you tell me please which way I ought to go from here? That depends a good deal on where you want to get to, said the Cat. I dont much care where – said Alice Then it doesnt much matter which way you go, said the Cat. - so long as I get somewhere, Alice added as an explanation.

Last words... Segmentation Personalization Relationship Affinity Loyalty

Selected reading Berthon P, (1996) Marketing Communications on the World Wide Web, Business Horizons, Vol 39, No 5, pp24-33 Cornforth SR and Koty W, (1996) Untangling the Web: It takes more than hits to evaluate your sites successes or troubles, Currents July/August pp Dwyer FR, Schurr PJ and Oh S (1987) Developing Buyer-Seller relationships, Journal of Marketing, Vol 51, No 2 pp Gronroos, C (1994) Quo Vadis Marketing? Towards a relationship Marketing Paradigm, Journal of Marketing, Vol 10, pp Haeckel SH, (1985) Strategies for Marketing the new technologies: commentary, Marketing in an Electronic Age, Buzzell RD ed, Harvard Business Press Hoffman D and Novak TP, (1996) A new marketing paradigm for Electronic Commerce, paper submitted for The Information Society Hoffman D and Novak TP, (1996) Marketing in hypermedia computer mediated environments: conceptual foundations, Journal of Marketing Vol 60, pp50-68 McGurran P (1997) Web Europe, Internet Business, May 1997, pp28-31 Rogers, EM (1983) Diffusion of Innovations, 3rd Edition, The Free Press New York