1. Know Who I Am MIS 6453 eCommerce April 17, 2006

2. Introduction eCRM (electronic customer relationship management) e-marketinge-servicese-salese-marketing Area of eCRM most concerned with using knowledge gathered about customers Analyticse-marketingPersonalization

3. Introduction “Analytics helps you understand the customer. E- marketing helps structure how you reach that customer, and personalization is about using all that knowledge to create a personalized experience.” “E-marking is no longer a fad. It is now about managing successful businesses and profitability.”

4. Analytics Analytics deals with understanding the information inside the details. Details include: Demographics, purchase and billing histories, etc. gathered by businesses Customer’s clickstream monitored by online companies “Analytics tools create information using data garnered from a number of customer touch points, both online and off-line.” Examples…

5. Analytics Problem: Data in its natural “dirty” state is useless to a company trying to market their product. Solution: There are companies out there who offer software that specialize in analyzing “dirty” data and turning it into “clear” information that can be used by marketers These different software packages offer many different specialized solutions…

6. Analytics: Expense and Complexity Back-end analytics are the most expensive to implement Six-figure range per deployment Why? Here’s an example: A large B2C website: 100 million hits per day Servers log about 200 bytes of data for each hit 20GB of raw data per day Data stored typically for at least 3 years This builds up to tens of terabytes over a couple of years Databases usually top out at tens of terabytes so new solutions are being considered Outsourcing…

7. E-Market Response rates for mass e-mails and discount offers are remarkably low Conversion rates are even lower Marketers can use e-marketing software to track what works and what fails

8. E-marketing Software Uses information from analytics reports to turn it into actions Major Players: Annuncio, Broadbase Software, E. Piphany, and Responsys.com

9. Analytics Stage Merchandisers look at reports structured around data in order to answer questions What did they buy?

10. E-marketing Stage Technology takes a back seat System makes a suggestion Marketers make the decision

11. Quotes “Relationships in data don’t necessarily mean anything. Numbers don’t lie but its choosing the right numbers that can make a difference,” says Rich Clayton vice- president of marketing for Angara e- commerce.

12. Personalize If analytics is the foundation, and e- marketing the framework, then personalization is the crown jewel of electronic marketing Fewer than 3 % of the targeted customers of mass e-marketing campaigns actually buy the product offered Many believe personalization is the best way to improve those numbers

13. Techniques Rules-based customization Neural network based artificial intelligence Collaborative filtering-based recommendation

14. Quote “The whole field of personalization technology is still a work in progress. Software companies focused on personalization technology are not entirely sure what works, and their clients are not quite sure what to expect. The industry at large is still up in the air about how to measure this technology's rate of success.”

15. E-CRM Figure out what the customer wants and respond appropriately Knowing customers better is an extremely attractive proposition for companies

16. Questions?