The customer adoption process: stages a consumer goes through when confronted with a new product or service. According to the adoption process, the consumer must first become aware of the product; then develop an interest in it; perform some pre-purchase evaluation; and then try the product, either as a consequence of a purchase or of a marketer-sponsored promotion or incentive. Two importance stages follow trial. First, the consumer must decide to purchase/continue purchasing the product, which can be behaviorally identified as adoption. A harder to discern stage is that of internalization, in which the product has become an integral part of the consumer’s lifestyle. The internalization stage is particularly important in the case of technology.

Diffusion process: it is a communications model and as such it consists of four elements: the innovation, communication channels, time, and social system within which the innovation is spreading. (normally distributed around a population mean… bell curve)

Consumer adoption: awarenessà interestà evaluationà trialà adoptionà internalization

Diffusion: innovatorsà early adaptorsà early majorityà late majorityà laggards

1)    Relative advantage: product benefits perceived as superior than existing products

2)    Compatibility: consistency b/w new product and consumer’s perception

3)    Complexity: difficult to learn to use

4)    Trialability/divisibility: new product can be tried

5)    Observability/ communicability: new product’s benefits are evident

Pervasive computing: implies that a single person has access to myriad computing devices to assist in performing all sorts of daily tasks. Pervasive computing aims to enable people to increase personal and professional transactions with new intelligent and portable devices. It gives people convenient access to relevant information stored on powerful networks anywhere, anytime. “Smart devices” are embedded with micro-processors that allow users to plug into intelligent networks and gain direct, simple and secure access to both relevant information and services. (speedpass, online checkin-British Airway, LA cell phone – parking meter)

6A’s: access anywhere, anytime, any authorized user on any internet enable device

 Strategic drivers of wireless technology …mobil/m-commerce

-context: providing necessary information when and where the customer needs or wants it
àlocalization: the location of the user can be identified and information specific to that location can be provided
àpersonalization: the customer can select not only the type of information desired but also the frequency of information provision

-time sensitive: information must be provided at the time appropriate to the customer.

-high value: coupon has reasonable value

-voice activation: good for driving

-one-click payment mechanisms: a system is which payment is easily and securely authorized and billed to a single account will be necessary to enable frequent use of m-commerce services (credit card info)

-security: users must be assured that data transmissions are secure, and authentication services must be provided in a way that is suitable for the devices

-privacy: protect personal data

-expanded permission marketing: what kind of information is consumers willing to receive, how often they are willing to receive transmissions, and where they are willing to receive it. Accurate customer database required.

Data: analyze information at a lower level

Knowledge: add expertise to information

 àevent based/ rule based (courses available only at certain time slots)

Role of knowledge in marketing

-Enable human agents to work better, faster, with more customer satisfying results (expert service @ 24-7)

-create automated systems as good as human agents

Chapter 13: Marketing Knowledge

Transforming data collected to useful information for decision making.

Knowledge continuum: Data (raw, unprocessed)à analyzeà information (for decision makers)à add expertiseà knowledge (make workers more productive and automate systems)

Explicit knowledge: readily available, knowledge of skilled workers can be articulated, communicated to others, incorporate into decision support or automated marketing systems (ex good counselor)

Tactic knowledge: knowledge not articulated, subconscious and difficult to communicate (soso/bad counselor)

Integrating front-and back-office (internal, non customer facing systems) services and delivering information to customer service personnel and decision makers when and where they need it is crucial to marketers. Marketers must deliver products and services seamlessly through multiple channels at times and places demanded by the customer to create great customer experience. Enterprises need to create usable knowledge from the resources they have (customer data and the expertise of best workers).  

-to enable human agents to do their work better, faster, and in a way that provided maximum customer satisfaction

-to create automated systems that perform at least as well as the most skilled human agent

Usability test: concept testing (logic site flow, easy to navigate, no design flaws, communicate desired co. image), prototype testing (site design complete, reaction to appearance, determine which site structure is more preferable and consistent with customer expectation), full utility (site uploaded to server, fully functioning even tho it’s no available for customer to access)

Server log: Log on the server that stores information whenever a file is requested from a site

Panel Data: the process for using panel data to generate site effectiveness data is the same as using panels in the general marketing research process. The first step is to recruit a statistically representative panel of internet users who agree to participate in the data collection. Specialized software is downloaded onto the participant’s computer to record the click stream data. The software is polled at regular intervals to upload the data. First, the source of the data is unambiguous, which it often it not with server logs. Second, a person who uses the internet from both home and work is two separate people according to server logs, but carefully planned and maintained panel data can overcome this issue. Third, the measurement firm can collect demographic and behavioral data from panel households that can be useful in reporting and analytics.

Collecting traffic, audience, and campaign data

Hit counters: a hit counter is a small piece of software that can be added to a web site to provide a few basic metrics. It measures the number of visits to the site. Users can generate reports from those counters.

Server log files: server log files are created by the server that houses the web site. Each time a browser requests a file in order to build a web page, it generates an entry in the server request log.

Coded pages: the use of coded pages is a new method of collecting data, on the “browser (user’s) side” of the information transaction instead of on the “server side” The tag part of the page that is requested by the served to the user’s browser. The file then sends data back to the server. Working with cookies, the tag can send back detailed information about the visitor’s activity on the page. One the surface, the data are the same as those collected by a server log. Data collected by tags has several advantages over server log data: the data may be more accurate, data collected by web bugs has smaller storage requirements because it stores only relevant data, and when data are collected in this manner, it permits real-time processing and viewing of site metrics.

Cookies: cookies are small data files that are stored on the user’s computer and transmitted back to the web server. Cookies can be set to retrieve personal information or not.

Variables used to measure web site traffic, audiences, and marketing campaigns

Traffic measures document site activity:

-hits: the number of files requested
-impressions: the number of times and ad banner is requested by a browser
-page views or deliveries: the number of times a web page is requested
-sessions: the amount of activity on a site during a specified period
-click-through: the number of times visitors come to the site by clicking on an ad

Audience measures provide data about the people who visit the site:

-visitors: the number of people who visit the site
            -total (includes multiple visits) or unique (different people) during a specified time frame
            -unidentified (anonymous) or identified (registered or customer)
-unduplicated audience: the visitors that are unique to a web site
-behavior on the site
            -number of page views

            -session time
            -path through the site
            -shopping cart abandonment
            -entry page (many visitors do not enter through the home page)

Campaign measures provide data about the effectiveness of marketing efforts: offline activity(direct mail) or off site(search keywords)

-by communication channel: e-mail, mail, online banner
-by offer: free shipping versus 25% off
-search effectiveness by keyword

To be meaningful, all these measures must be taken during a specified period. That leads to an almost endless set of metrics that can be produced, depending on the needs of the marketer. Some common metrics follow:

-average number of visits per day
-number of page views per month
-average visitor session length last month
-number of hits for each hour of the day
-paid search results for the most recent 7-day period

 Different reports for interpretation: Analytics, Report Dashboard, Marketing campaign reports, browser based reports, path analysis, segmentation by behavior and channel, panel based reports

Customers who are extremely satisfied are 6 times more likely to repurchase products

3 revenue streams associated with each customer: base spending amount, growth spending amount as they continue using the service/stay in market, referrals. (breakeven acquisition cost occurs after 1 year)

Mass media: cr was owned by intermediary in a channel of distribution

B2B market: customer info stored in field sales force… multiple and confusing customer contact points existed

Transactional marketing: center around products and single economic exchanges (goal is in getting mkt share…product focused)

CLV becomes key metric: it incorporates both revenue and cost to serve customers, customer/employee satisfaction, and loyalty.  

CRM consultants Don Peppers: info driven: every step in process adding to customer database is essential to drive CRM strategy and programs: Identify customers, differentiate them, interact with them, customize some aspects of organization’s dealings (tailored communications/specialized offers).

Sales force automation: cost efficient: tools like call reporting and checking order, direct mail sales, telemarketing (follow up qualified sales leads), mgt tools like sales forecasting and reporting.

Yellow Transportation: track shipment status and personalize pages (specify shipping time and pick up address)

Visitors on a site enters information for registration: email address and name… profile info (useful for targeting and sending personalized email campaigns which would in turn generate higher response)

CRM process

Targeting: identify valuable customers and send direct marketing communication abt goods and service
Personalization: create specialized content for customers with a known profile
Customization: creation of new content, service, product based on needs and wants of individual customers

Anonymous profiles: created without knowledge of prospective customer (click stream data) gathered from cookies
–cookie: small text file that stores information and data about user activity

Identified profiles: collected data explicitly provided by known prospect (register)

Rule based personalization: base on known characteristics  weather.com)… static
User controlled personalization: user choose content displayed… instantaneous
Info-driven personalization: use complex model to assign dynamic content

http://www.nytimes.com/2008/12/14/business/media/14digi.html?pagewanted=1&_r=2&ref=business

People have learned to ignore the ads shown on social networks like facebook. This article also mentioned a little about facebook’s targeting skills. Faceook was able to target a brand or product speciffically to one person. That brings our attention to issues in invading people’s privacy. What should be the limit in data that facebook administrators can access and use?

” Honda is doing the best job of keeping its customers of any company selling vehicles in the U.S. According to J.D. Power and Associates’ “2008 Customer Retention Study,” … The study suggests that safety, fuel economy, and deals and incentives are playing a bigger role in keeping consumers in a brand than they did last year. “

http://www.bizreport.com/2008/12/goodmail_combines_video_email.html

Study reveals how student interact with email:

http://www.bizreport.com/2008/12/study_reveals_how_student_interact_with_email.html

Good mail will launched a Certified Video platform that allows video clips to be embedded into an email in 2009. Television networks and movie studios can use it to target their consumers and send messages through that platform.

Studies have shown that Gmail is the most popular email system among both High school and College students. “Researchers found that more than half of the students surveyed don’t reply to or engage with email messages. So perhaps most important, though, is why students are engaging with advertising. The top reasons are trust (in the advertiser/brand) and product relevance…students aren’t clamoring for email marketing messages. Why? Many are turning to social networks. The eROI survey found that students are using email to stay up to date with their social networks….a multi-platform campaign from email to social network and vice versa could be a better way to engage the student masses.”

Because of the economic situation we are in now, people in the market have been turning to the internet for alternatives in spending and in saving their money.

” The urge to live cheaply was reflected in the surging popularity of online video. Tina Fey’s spot-on Sarah Palin shtick was credited for reviving the pop-culture relevance of NBC’s (GE) Saturday Night Live, but it also helped push free Internet video into prime time (and much of the rest of the day). Many viewers are ditching traditional TV (and in some cases, cable subscriptions) to watch shows on network sites such as NBC.com, and on sites like News Corp. (NWS) and NBC-owned Hulu, Joost, and Sling.com (DISH). For movies, some are forgoing expensive new Blu-ray players (BusinessWeek, 9/18/08) in favor of cheap subscriptions to services such as those offered by Blockbuster (BBI) and Netflix (NFLX), which both began including free streaming movies to set-top devices this year.

Music fans flocked to free songs, too. In September, MySpace debuted a service that streams entire music catalogs from the four major record labels to members of the social networking site for free. Comparable offerings from sites like Imeem, iLike, and Blip.fm gained in popularity. Rapper Lil’ Wayne proved that giving away music can be an effective marketing proposition, as he released 30 free tracks in July before going on to sell 1 million copies of his new album in a single week.

Free online software of all types saw a huge pickup in consumer and business users this year. From the micro-messaging site Twitter to the open-source Linux operating system, users are finding tools they can download for free from the Web to be just as efficient as expensive software packages.”

Customer Service… is it necessary?

Is it good to get complaints/feedback?

*what do you do after you get feedback?

àfix the problem

àimprove quality of experience

Customers become frustrated when they call customer service and representatives transfer them around to different departments or even hang up.

People want apology when they call in. They might also want credit/money/free service.

Company’s goal from customer is to ultimately create an error free product.

Ways of customer service:

-call 1-800 numbers (many companies outsourced to India or China)

free for customers but expensive for company to maintain

-live chat: fast/direct and convenient, real time response, doesn’t cost company as much because representatives can multitask

-FAQ or automatic response emails: cheapest way

nline marketing campaign:

-to fit with the internet: does the personality of the product align well with the internet?

-fit with the target audience: internet usage characteristics of the target audience?

Action oriented steps:

è  Is it info/purchase? What action you want them to take?

è  How do they interact? Email? Feeds?

Advertising model: Fixed cost and time component important

Web marketingàtarget marketàunderstand what they careà connect with the right message(improve brand image and drive sales)

Active medium

Permission from customers: search, email opt in, subscribe blogs…. Shows interest

Search successàkeywordsàget seen(in search engine index)àget ranks(the higher the better)àget clicked(more visits brings rank higher)

Reviews: customer talks back… gives feedback… share info with other consumers

Customer service representatives should go on those reviews and reply to the post so they can show that they care about their customers… change/fix the problem and make the negative impression go away

Direct marketing= web marketing… persuade someone to do something à opportunity to test out ideas and see response, which ideas do customers favor the most?

Elementsàmessageàtestingàresponse (companies can track responses on the internet and understand how customers behave… and which messages should they use to target the right customers)

Drive demand up by increasing conversion rate and increasing site traffic (how many people viewed and responded?)

Conversion tracked through online sales, store/dealer/partner, phone calls, affiliate line, download white paper, fill out contact forms… design to get viewers to do something (land pagesàlearn-àshopàbuyàgetà use)

Offline conversion: print coupon (dealers can track sales and see how many people actually saw the ad and took action), call special number dedicated to that specific deal

Connectà social media marketà message passed around, linksà be responsive (hear customer comments and ratings and try to fix problem)

Change, build, improve à make things better and more attractive

Multi variant testing: different combinations and randomly selected to show customers on site and test their response rate(this helps in deciding which combination works best and can get the highest response rate)

Agile development: experiment as you go, try/add/change at anytime