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Government Multichannel Marketing: How to seduce citizens to the web channels?
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Government Multichannel Marketing: How to seduce citizens to the web channels?

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Governments have a variety of channels at their disposal to interact with their citizens. Having realized that citizens still prefer the traditional channels, such as the front desk and the telephone, ...

Governments have a variety of channels at their disposal to interact with their citizens. Having realized that citizens still prefer the traditional channels, such as the front desk and the telephone, governments have to (re)think their multichannel marketing (MCM) strategies. In order to be successful, not only knowledge on citizen multichannel behavior is required but also on the effects of MCM instruments. Questions such as how do citizens’ perceive the various instruments and to what extent are the instruments associated with each other rise up. Moreover, can instruments be used to target specific citizen segments? Based on qualitative depth interviews we formulate constructs to measure the citizens’ perceptions on the instruments. Subsequently, we answer our research questions based on a quantitative survey amongst almost 2,000 citizens. As a result, this research increases the knowledge on government MCM and as such the possibilities to influence citizen multichannel behavior.

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    Government Multichannel Marketing: How to seduce citizens to the web channels? Government Multichannel Marketing: How to seduce citizens to the web channels? Presentation Transcript

    • Government Multichannel Marketing: How to seduce citizens to the web channels? Dr. Marije Teerling Willem Pieterson Telematica Instituut University of Twente Marije.Teerling@telin.nl W.J.Pieterson@utwente.nl www.kanaleninbalans.nl
    • Channels in Balance | Research project • Government Multichannel management • Partners: national government agencies, ministries, local government, universities • Basic principle: Citizens’ are able to choose their preferred channel • Key topics – Channel synchronization: how to realize consistent information for customers across channels and services – Channel marketing: how to entice customers into using the most cost efficient channel given their problem (usually the electronic channel) HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Trends & Developments • ’90  introduction new (digital) service channels • Digital channels  efficiency, lower costs • Multichannel management (front desk, telephone, website, post, e- mail, sms, etc.) • Citizens still mainly use the traditional channels! Country Switzerland Canada Australia The Channel Netherlands Front Desk 55% 48% 46% 33% Phone 54% 55% 28% 28% Internet 24% 25% 13% 24% Post 14% 30% 19% 13% (and/or Fax) HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Background | Instruments Transfer of information; C e.g. mass media, pr, (Communication) training. (promotion) Instruments are rarely used in isolation. Product; e.g. quality, assurance) CLE CEL Laws & regulations; e.g. taxes Economic stimuli; e.g. Place LCE ECL discounts, grants. SERVICE (price) LEC ELC L E (Legal) (Economic) Which instruments can be empirically distinguished? How do citizens perceive the instruments? Are the instrument associated in their minds? HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Background | Citizen characteristics & requirements Citizen characteristics • Differences in multichannel behavior (e.g., Burke, 2002; Balasubramanian et al., 2005)  How do citizen characteristics influence the perceptions of the instruments? Requirements for multichannel behavior • Access to the internet • Experience with the internet (e.g., Montoya-Weiss et al., 2003) • Awareness and knowledge of the e-gov services (e.g., van Dijk et al., 2006)  What is the influence of the requirements on the perceptions of the instruments? HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Background | Citizen multichannel behavior Citizen’s decision Citizen’s broad to use a medium patterns of in a specific medium usage situation over time Channel Marketing Citizen Multi-Channel Behavior How does citizen multichannel behavior Channel Channel Channel Use Choice Usage Evaluation vary the perceptions of the channel Experience marketing instruments? Influenced by perceived channel characteristics HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Empirical Setting | Method • Medium sized Dutch municipality (136.573 inhabitants) – Based on size, population and services, the municipality is average sized. • Local government service channels: – Front desk – Telephone – Website – Post • Two-stage methodology 1. Exploratory depth interviews with citizens (n=15) – Main topics: use of front desk services, appointments made for services, use of e-services, e-mail contact, opinions on the various instruments. – Scales developed based on the interviews 2. Survey among Dutch citizens HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Empirical Setting | Data > 65 < 25 2% 10% 25 - 45 • Survey conducted early 2008 through: 42% – Front desk 45 - 65 – Online channel 46% • Response & Sample size – Front desk sample = 127 citizens Age distribution – Online panel sample = 1,802 citizens • 3,068 e-mails sent out. Response rate = 58.7% • Demographics indicate a representative sample for the municipality. – 46% women, 54% men – Average age = 48 years – 74.8% has at least a high school diploma – Majority of respondents have extensive or very extensive Internet experience (72%). • Total sample is representative for the Dutch population HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Results | Which instruments can be distinguished? • In total 20 items related to the various instruments were formulated based on the qualitative interviews. • Measured on a five-point Likert scale • Exploratory factor and reliability analyses resulted in 5 underlying constructs and the final selection of 16 items. Abr. Name Nr. of items Cronbach’s α LED Legal / Exclusive Distribution 3 0.72 CWS Communication Web Service 4 0.80 PTC Price Traditional Channels 3 0.69 PWS Price Web Services 3 0.69 WSO Web Service Offering 3 0.70 HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Results | How do citizens perceive the instruments? Average perceptions of the instruments Construct N Means St. dev • Negative about LED & PTC LED 1942 1.72* 0.67 • Positive about CWS 1941 3.79* 0.64 PWS, WSO, CWS PTC 1942 2.15* 0.81 • Most positive PWS 1938 3.45* 0.89 about CWS WSO 1938 3.73* 0.69 *Means shown differ significantly from the neutral point (3) of the scale at the 0.05 level. HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing | Results | Are the instruments associated? Communication web service • Only 1 not (CWS) significant correlation: LED*WSO .39 • Price traditional .05 .62 channels (PTC) strongest Web associated with Service legal / exclusive .03 Offering (WSO) .34 distribution (LED) and price web Legal / Price services (PWS) Distribution Web services (LED) (PWS) .26 HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing | Results | Influence of citizen characteristics Service offering online 3.80 • One-way Anova for age: 3.75 – WSO (F(4,1924)=3.05; see figure) 3.70 • T-test for gender 3.65 PTC WSO t 3.60 M 2.21 3.78 3.44 3.55 F 2.08 3.67 3.3 3.50 • One-way Anova for Education: 3.45 – Higher educated citizens Younger 36 - 45 more positive about WSO than 35 46 - 55 years years years 56 - 65 years 66 years • One-way Anova household size and older – Bigger households favor One-way Anova: Age * WSO economical instruments HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Results | Influence of the requirements Internet Access 4 3,8 3,6 3,4 3,2 CWS PTC 3 PWS WSO 2,8 2,6 2,4 2,2 2 One accesspoint or no access Access at multiple points HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Results | Influence of the requirements Internet Experience 4,0 3,8 CWS 3,6 PWS WSO 3,4 3,2 3,0 Not experienced Neutral Experienced HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Results | Influence of the requirements Knowledge of online services 3,90 3,85 3,70 CWS 3,50 3,80 3,30 3,10 WSO 3,75 2,90 2,70 3,70 2,50 2,30 3,65 2,10 1,90 3,60 1,70 Low knowledge Neutral High knowledge 1,50 Low knowledge Neutral High knowledge LED CWS HICSS – 42 PTC PWS WSO www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Results | Citizen multichannel behavior One-way Anova Channel Choice variables Last channel LED CWS PTC PWS WSO Preferred channel Website 3.9 3.9 2.2 2.3 3.6 3.6 Website E-mail 1.8 3.9 E-mail Post 3.5 2 1.9 3.2 3.1 3.9 3.5 Post Front desk 1.6 3.6 Front desk Telephone 3.7 Telephone LED significant at 90% reliability for last channel, LED not significant for preferred channel. One-way Anova Channel Usage Most often used LED CWS PTC PWS WSO Website E-mail 2 Post 3.9 2.3 3.6 Front desk Telephone 3.7 3.1 LED and WSO are not significant for most often used channel HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Results | Citizen multichannel behavior Channel choice – channel characteristic combination • Citizens that Characteristic LED CWS PTC PWS WSO associate the Personal situation E W W W E website with Language variation W E W E E characteristics Fast answer E W W W W favor CWS, Multiple cues T W PTC, PWS Ease of use E W W W E and WSO Achieve goal E E W W W Fast in contact W W W W Most service E W W W W • Citizens that Cheapest W W W W associate Best experiences E W W W W email with E = E-mail, W = website, T = Telephone, characteristics Blank cell indicates no significant differences in MCM instrument perceptions. favor LED HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Conclusions • Four main multichannel marketing instruments – Legal or distribution, communication, price (traditional channel or digital channel), web service offering • Citizens favor the ‘softer’ instruments – CWS, PWS, WSO • Promote e-accessibility – The better citizens do on the requirements, the more they favor the use of instruments to promote e-services. • The softer instruments may enhance each other! – The softer instruments are strongly correlated (CWS, PWS, WSO) • Target specific segments – WSO  younger, higher educated and/or male citizens – PTC and PWS  larger households – Depending on citizens’ multichannel behavior: perceptiveness for the instruments may vary HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Multichannel Marketing| Future research • Determining the effectiveness of specific instruments / combinations of instruments – In terms of efficiency and customer satisfaction • Short term versus long term effects of instruments • Requirements for the instruments to be used – Accessibility of citizens; quality of web offering • Further research within the project Kanalen in Balans – Qualitative study for the Dutch Ministry of Internal Affairs – New smart forms of communication @ SVB – Training & self-service technology @ IBG – From channel choice research to defining a multichannel marketing plan @ 3 Dutch municipalities – Improving the web channel (chat function) @ UWV HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
    • Q HICSS – 42 January 5 – 8, 2009