class 13 the future
TRANSCRIPT
The (Wireless) Future
Class 13: (M 8/15) E. Neufeld, Internet Marketing 4555, Summer 2011
Agenda
Logistics (10 mins) Current Events (20 mins) Review (20 mins) Lecture (60 mins) Review Next Assignments (10 mins)
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Logistics
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1. Revised Syllabus II
Class 13: The Future (M 8/15) Read
360i-Mobile-Marketing-Playbook (posted on the web)
Mobile Marketing Success Stories (posted on the web)
View Webinar: Mobile Marketing Trends, Insights and Best Practices @ www.emarketer.com/docs/webinars/Mobile_Marketing_Trends_8_26_10.html
All Group Projects are due
Review for Fourth Exam
Class 14: Group Presentations (W 8/17) Student presentations of group projects (limited to 15 minutes each)
Class 15: Summary (Th 8/18) A summary of the key learning’s of the semester will be presented.
Suggestions for course improvement will be requested.
Fourth Exam (covers content of classes 10-13)
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2. Revised Current Events Assingments
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Last First Current Events Assignment
PETERSON CAROL Class 8
PROKOPENKO ALEKSANDRA Class 8
LIAO LINGFENG (William) Class 10
LUKOVIC SUADA Class 10
MCLEISH MELICIA Class 10
PEACE ERIC Class 10
PENNINK NICHOLAS Class 10
PUROHIT ANJALI Class 12
SEREBRINSKIY MAKSIM Class 13
SILBERMAN MORAN Class 13
SUEN ALAN Class 13
VALENTIN-ARIAS ISRAYMER Class 13
VALES KELLY Class 14
WHITE NADINA Class 14
ZHAO KIN Class 14
Current Events
Google To Buy Motorola Mobility For $12.5 Billion
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http://moconews.net/article/419-google-to-buy-motorola-mobility-for-12.5bn-a-big-step-in-its-apple-batt/
Review of Test # 3
Vexing Questions
2. Marketers using ________ often form groups of consumers based on the outcomes they desire from the product. a. behavioral segmentation b. benefit segmentation c. online selling d. usage segmentation
6. Many firms are allowing customers to create Web site content. Examples of this include all the following except ________. a. blogs b. product reviews c. infomediation d. Real Simple Syndication (RSS)
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Vexing Questions
24. Sponsorships that integrate editorial content and advertising online are very popular with marketers. a. True e. False
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Review: CRM & Customer Service
What is Customer Relationship Management
(CRM)?
Customer Relationship Management (CRM) =
What: A widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects.
How: It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support.
Goals: To find, attract, and win new clients Nurture and retain those the company already has Entice former clients back into the fold
Reduce the costs of marketing and client service.
13http://en.wikipedia.org/wiki/Customer_relationship_management
Benefits from CRM
1. Increased revenue from better targeting.2. Increased wallet share with current customers.3. Retention of customers for longer time periods.
1. The cost of acquiring a new customer is typically 5 times higher than the cost of retaining a current customer.
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In an Era of Relationship Marketing, CRM is Required …
Mass marketing Relationship marketing
Discrete transactions Continuing transactions
Short-term emphasis Long-term emphasis
One-way communication
Two-way communication and collaboration
Acquisition focus Retention focus
Share of market Wallet share
Product differentiation Customer differentiation
Goals are focused on growing customer value,
not market share
The primary goal of traditional marketing is
generally stated in terms of market share
Continum from Mass Marketing to Relationship Marketing
A CRM Model…
Identify your customers by individual or household name and address or e-mail address.
Differentiate them according to their needs and their actual or potential value.
Interact with customers based on their own needs. From the organization's perspective, the interactions should become more cost-effective. Each interaction should be used as an opportunity to increase the store of data about the individual or household.
Customize at least some aspects of the organization's dealings with the customer. This could be things such as tailored communications and specialized offers that allow the enterprise to recognize the customer as a valued supporter and that present opportunities for growing the value of the individual customer.
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Why Is Doing CRM so Hard ?
1.Requires significant changes in the way marketing is done2.Must be treated as an ongoing process3.Requires changes in Organizational Thinking
Why CRM Programs Typically Fail
Initiative Launched without Comprehensive Strategy Not Integral to the Business Strategy Based on What Worked for Another Company Launched without Concern for Effective Enterprise and Customer
Interfaces Considered an IT Project Instead of a Business Initiative Launched without Defined Objectives and Metrics Considered a One-Time Event Lack of a Customer-Centric Culture Lack of Top Management Leadership & Employee Buy-In
Why CRM Programs Typically Succeed
Good Customer Data Quality Processes and Systems Organizational Resources and Commitment Software is Necessary, but not Sufficient
Metrics, As Always, Are Key
E-marketers use numerous metrics to assess the internet’s value in delivering CRM performance.
ROI Cost savings Revenues Customer satisfaction
One very important CRM metric is customer lifetime value (LTV).
One study named customer retention, ROI, and customer lift (increased response or transaction rates) as the most important metrics.
Why is Customer Service so Important
?
Because Retaining Customers is Cheaper Then Finding New Ones...
A average Firm Looses 50% Of Customer Base Every 5 Years Reducing Defections Increases Profits Many Customers Who Defect Were Satisfied Extremely Satisfied Customers Are More Likely To Repurchase
22http://en.wikipedia.org/wiki/Customer_relationship_management
Satisfied Customer Tells Five People
A Typical Dissatisfied Customer Tells Nine People About his Experince …
http://theoatmeal.com/comics/customer_service
What Do Business Have to Do Deliver Exceptonal Services?
Customer Want / Businesses Do
Customers Want
Timely Response
Informative Content
Real Person
Product Information
24-Hour Availability
One Study of Response
15% Acknowledged
39% Responded in 24 Hours
17% Were Complete and Accurate
6% Did Not Offer Email Service
What Are The Key Customer Services
Channels?
Key Customer Services Channels
Telephone Web-Based
Live Person Email, Instant Messaging, Live Chat
Automated FAQs, Knowledge Bases, Video
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Key Learnings
Customer Care Is A Key Marketing Discipline Customer Satisfaction/Loyalty, Enterprise Profit Need Business Processes, Customer Segments, Relevant Technology Customers Want Choice In How To Access Service Cost Per Customer Contact Varies By Channel Develop Service Strategies Based on CLV Be Sure Technologies Are Satisfiers, Not Dissatisfies
BREAK
Lecture: The (Wireless) Future
How Important do you Think Mobile
Will Become to the Digital Marketing
Mix & Why ?
Key Trends
1. Mobile devices & platforms have experienced dramatic evolution
2. Mobile usage has become pervasive
3. Voice no longer the killer app
4. Device market is shifting in favor of smartphones
5. Increased ownership of smart devices is driving mobile Internet growth
6. Communication modes are undergoing a significant shift
7. Surge in demand for advertising projected
8. Tablets are changing the face of mobility and computing
1. Mobile devices & platforms have experienced dramatic evolution
Capabilities:
3) Initiate phone calls4) Receive phone calls5) In one place
Capabilities:
3)Initiate phone calls4)Receive phone calls5)On the move6)Text7)Game8)Maps9)News10)Watch TV/Video11)Alarm clock12)Etc.
~1900 1983 2009
Capabilities:
3) Initiate phone calls4) Receive phone calls5) On the move
2. Mobile usage has become pervasive
The Tipping Point is Visible …
3. Voice No Longer The Killer App
• 8 in 10 Americans now have a cell phone. Of these:– 6 in 10 have data plans– 3 in 10 have access to fast 3G networks– 2 in 8 have smartphones– 84 mm+ access the Mobile Internet on a regular basis – 3 in 10 browse the Mobile Internet on a regular basis
4. Device market is shifting in favor of smartphones
What is it that Makes a Phone
“Smart”?
5 Things That Makes a Phone Smart
Operating System Web Access Customized Software Touchscreen and/or QWERTY
Keyboard Messaging
5. Increased ownership of smart devices is driving mobile Internet growth
6. Communication modes are undergoing a significant shift
Application
Shortcode
32665FBOOK
7 in 10
Mobile Web3 in 10
3 in 10
Social Networks are fast becoming the primary way mobile users exchange information
Nexus of mobile and social is increasingly about one key attribute: LOCATION
Mobile Search: Growing exponentially, but off a small base ….
Mobile Shopping: We are in the early days …
7. Surge in demand For advertising projected
Mobile advertsing is unproven, but shows promise ….
8. Tablets are changing the face of mobility & computing
http://www.onlinemarketing-trends.com/2011/04/tablets-sales-to-grow-400-to-reach-81.html
In Summary (Part 1)
Mobile devices & platforms have experienced dramatic evolution
Mobile usage has become pervasive Critical mass of consumers using data services now
Voice No Longer The Killer App
Smartphones are the future Device market is shifting in favor of smartphones
Increased ownership of smart devices is driving mobile Internet growth
Communication modes are undergoing a significant shift Browsing + Apps + SMS define the mix
Social Networks are fast becoming the primary way mobile users exchange information
Mobile Search: Growing Exponentially, but off a small base
Mobile Shopping: We Are In the Early Days …
In Summary (Part 2)
Surge in demand for advertising projected
Tablets are changing the face of mobility and computing
Expect continued evolution
Mobile Internet presents a unique opportunity for marketers
Next Class
Class 14: Group Presentations (W 8/17) Student presentations of group projects (limited to 15 minutes each)
Class 15: Summary (Th 8/18) A summary of the key learning’s of the semester will be presented. Suggestions for course improvement will be requested. Fourth Exam (covers content of classes 10-13)
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Questions?
Here’s What an iPad Looked Like in 1994
http://allthingsd.com/20110813/heres-what-an-ipad-looked-like-in-1994-video/
1. Revised Syllabus I
Class 10: Customer Acquisition II: Brand Development & Online Advertising (M 8/8) Read Chapter 14 – Strauss
Guest Lecturer on Online Advertising: Jennifer Martinez, Amazon
Read “Interactive Branding: Best Practices in a Direct Response-Driven Media” (posted on web)
Team Assignment # 3 is due (see Appendix A for details)
Class 11: Customer Retention (W 8/10) * *Virtual Class**
Read Chapter 15 – Strauss
Work on Team Project
Class 12: Customer Service & Support (Th 8/11) Read Chapter 9 – Roberts (posted on the web)
Review of Customer Retention
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