IWMW 1999: Building relationships online

www.ulst.ac.ukwww.ulst.ac.uk
Building Relationships OnlineBuilding Relationships Online
… the road ahead or the road less travelled by?the road ahead or the road less travelled by?
Joe Passmore
Head of Corporate MarketingHead of Corporate Marketing
University of UlsterUniversity of Ulster

University web development is at a fork inUniversity web development is at a fork in
the road...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 newto carry on or to move to a new
paradigmparadigm

Some features of University webSome features of University web
sites...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 university’s
activity?
The Unanswered QuestionThe Unanswered Question

Why do you have a website?Why do you have a website?
• Because you can?Because you can?
• Technology seduction, theTechnology seduction, the ‘‘19th Hole19th Hole’’
syndromesyndrome
……or is your site built on customersor is your site built on customers’’
expectation and requirements?expectation and requirements?
• What do they want?What do they want?
• Ask them!Ask them!

Critical Success FactorsCritical Success Factors
CSFCSF CriteriaCriteria
Strategic PlanningStrategic Planning Clearly defined business goals; analysisClearly defined business goals; analysis
of customerof customer needs and expectationsneeds and expectations
Web Design/ProductionWeb Design/Production Professional design and structureProfessional design and structure
Organisational StructureOrganisational Structure Integrated with other activity; isolation leadsIntegrated with other activity; isolation leads
and Integrationand Integration toto ‘‘electronic brochureelectronic brochure’’; professional management; professional management ofof
emailemail
Internet MarketingInternet Marketing Proactive in inviting users to register interests; one-Proactive in inviting users to register interests; one-
to-one communication; customized informationto-one communication; customized information
Measurement CriteriaMeasurement Criteria Payback may come in offline activity; monitor likesPayback may come in offline activity; monitor likes
and dislikes of site; ensure realistic targets and clearand dislikes of site; ensure realistic targets and clear
measurement criteriameasurement criteria
Based on Pira Research, McGurranBased on Pira Research, McGurran

Critical Success Factors contCritical Success Factors cont’’dd
• 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…Marketing is to establish, maintain and enhance…
relationships with customers and other partners at arelationships with customers and other partners at a
profit so that objectives of the parties are met. This isprofit so that objectives of the parties are met. This is
achieved by a mutual exchange and a fulfillment ofachieved by a mutual exchange and a fulfillment of
promisepromise””
Christian Gronroos, 1994Christian Gronroos, 1994
or, put more succinctly...or, put more succinctly...
““An elaborate form of database marketingAn elaborate form of database marketing””
Brodie et al, 1997Brodie et al, 1997

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

Some relationship marketing issuesSome relationship marketing issues
• Customer satisfaction as intention toCustomer satisfaction as intention to
repurchaserepurchase
• The longer a relationship lasts the moreThe longer a relationship lasts the more
profitable it becomesprofitable it becomes
• Each time a visitor returns to a site they see theEach time a visitor returns to a site they see the
same thing - unacceptablesame thing - unacceptable
Every time you go to the bank they donEvery time you go to the bank they don’’t ask yout ask you
to open a new account!to open a new account!
However, they might try to sell you additionalHowever, they might try to sell you additional
products based on your profileproducts based on your profile

Building relationshipsBuilding relationships
• Data gathering online and offline
• Integration between online and offline
activity
• Building affinity - lifetime email 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
Intranet Internet Extranet
i Student Intranet
i Business Site
i Admissions/applications site

Site ObjectivesSite 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.comcan facilitate interactivity/cross selling e.g. Amazon.com
– raises ethical issues and data protection issuesraises ethical issues and data protection issues
– The primacy of the customerThe primacy of the customer

Technology assimilationTechnology assimilation
• Experimental applicationsExperimental applications
– Prototype scientific applicationsPrototype scientific applications
• Efficiency/Convenience applicationsEfficiency/Convenience applications
– Technology used to same work as currently being done butTechnology used to same work as currently being done but
more conveniently/at less costmore conveniently/at less cost
• Effectiveness applicationsEffectiveness applications
– Old problems addressed in new with better resultsOld problems addressed in new with better results
• ‘‘Previously unthinkablePreviously unthinkable’’ applicationsapplications
– With the required literacy, truly innovative exploitation occursWith the required literacy, truly innovative exploitation occurs

Experimentall
Efficiency/
Convenience
Effectiveness
“Previously
Unthinkable”
Stages of Technology Assimilation (Haeckel, 1985)Stages of Technology Assimilation (Haeckel, 1985)

High Level
of ECom
High Level
of RM
Low Level
of ECom
Experimental Efficiency/
Convenience
Effectiveness “Previously
Unthinkable”
Commitment
Expansion
Awareness
No awareness
Exploration
Low level of
RM
UniversitiesUniversities

University marketing - beyond 2000University marketing - beyond 2000
• Increasing emphasis on one-to-oneIncreasing emphasis on one-to-one
communication - building relationshipscommunication - building relationships
• Developing mechanisms for data captureDeveloping mechanisms for data capture
• Introduction of call centres - Plymouth,Introduction of call centres - Plymouth,
NewportNewport
• Use of databases for content managementUse of databases for content management
• Greater integration of online & offline activityGreater integration of online & offline activity
• Increased use ofIncreased use of ‘‘Print on DemandPrint 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...Know the road ahead...
‘‘Would you tell me please which way I ought to goWould you tell me please which way I ought to go
from here?from here?’’
‘‘That depends a good deal on where you want to getThat depends a good deal on where you want to get
to,to,’’ said the Cat.said the Cat.
‘‘I donI don’’t much care where –t much care where –’’ said Alicesaid Alice
‘‘Then it doesnThen it doesn’’t much matter which way you go,t much matter which way you go,’’
said the Cat.said the Cat.
‘‘- so long as I get somewhere,- so long as I get somewhere,’’ Alice added as anAlice added as an
explanation.explanation.

Last words...
• Segmentation
• Personalization
• Relationship
• Affinity
• Loyalty

Selected reading
Berthon P, (1996) Marketing Communications on the World Wide Web,Berthon P, (1996) Marketing Communications on the World Wide Web, Business HorizonsBusiness Horizons, Vol 39,, Vol 39,
No 5, pp24-33No 5, pp24-33
Cornforth SR and Koty W, (1996) Untangling the Web: It takes more than hits to evaluate yourCornforth SR and Koty W, (1996) Untangling the Web: It takes more than hits to evaluate your
sitesite’’s successes or troubles,s successes or troubles, CurrentsCurrents July/August pp 10-16July/August pp 10-16
Dwyer FR, Schurr PJ and Oh S (1987) Developing Buyer-Seller relationships,Dwyer FR, Schurr PJ and Oh S (1987) Developing Buyer-Seller relationships, Journal of MarketingJournal of Marketing,,
Vol 51, No 2 pp 11-27Vol 51, No 2 pp 11-27
Gronroos, C (1994) Quo Vadis Marketing? Towards a relationship Marketing Paradigm,Gronroos, C (1994) Quo Vadis Marketing? Towards a relationship Marketing Paradigm, Journal ofJournal of
MarketingMarketing, Vol 10, pp347-360, Vol 10, pp347-360
Haeckel SH, (1985) Strategies for Marketing the new technologies: commentary,Haeckel SH, (1985) Strategies for Marketing the new technologies: commentary, Marketing in anMarketing in an
Electronic AgeElectronic Age, Buzzell RD ed, Harvard Business Press, Buzzell RD ed, Harvard Business Press
Hoffman D and Novak TP, (1996) A new marketing paradigm for Electronic Commerce, paperHoffman D and Novak TP, (1996) A new marketing paradigm for Electronic Commerce, paper
submitted for The Information Societysubmitted for The Information Society
Hoffman D and Novak TP, (1996) Marketing in hypermedia computer mediated environments:Hoffman D and Novak TP, (1996) Marketing in hypermedia computer mediated environments:
conceptual foundations,conceptual foundations, Journal of MarketingJournal of Marketing Vol 60, pp50-68Vol 60, pp50-68
McGurran P (1997) Web Europe,McGurran P (1997) Web Europe, Internet BusinessInternet Business, May 1997, pp28-31, May 1997, pp28-31
Rogers, EM (1983)Rogers, EM (1983) Diffusion of InnovationsDiffusion of Innovations, 3rd Edition, The Free Press New York, 3rd Edition, The Free Press New York

IWMW 1999: Building relationships online

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