* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Lecture 2 - Andrew.cmu.edu
Online shopping wikipedia , lookup
Social media marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Market penetration wikipedia , lookup
Marketing channel wikipedia , lookup
Green marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Digital marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Service parts pricing wikipedia , lookup
Product planning wikipedia , lookup
Global marketing wikipedia , lookup
Subscription box wikipedia , lookup
Customer experience wikipedia , lookup
Direct marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Supermarket wikipedia , lookup
Visual merchandising wikipedia , lookup
Street marketing wikipedia , lookup
Customer satisfaction wikipedia , lookup
Customer relationship management wikipedia , lookup
Value proposition wikipedia , lookup
Customer engagement wikipedia , lookup
Service blueprint wikipedia , lookup
© Prof. Karen Clay Broadvision • Who are the customers? – Firms • Firms’ customers • Firms’ customers – Offer information • Directly by completing form • Indirectly through clickstream – Value added through mass customization • Barriers: trust and privacy © Prof. Karen Clay Broadvision • Mass customization – Offering customers incentives to reveal information – Helps firm learn about who its customers are • Offering the most value added – Broadvision – Collaborative filtering © Prof. Karen Clay Broadvision • Getting the customer to transact – Personalized discounts – How does this work in the work of shopping bots • Going from one transaction to many – Delivering value added – Switching costs • Search costs • Information © Prof. Karen Clay Broadvision • Who are Broadvision’s customers? – Global 1000 – Case • Kodak, Banco Santander – Web site • American Airlines • Cell Mania • Walmart © Prof. Karen Clay Broadvision • How does Broadvision attract customers? – International sales force – Web site • Demonstration of personalization • Case studies • How does Broadvision offer value added? – Who are their competitors? • Discussion in the case • No discussion in SEC documents © Prof. Karen Clay Broadvision • Where does Broadvision go from here? © Prof. Karen Clay One to One Marketing • Turning a one time customer into a repeat customer – Much cheaper to retain customers than to attract new ones – Implication: narrow base of loyal customers can be more profitable than a wide base of occasional customers © Prof. Karen Clay Permission Marketing • Is one step up the chain from 1:1 – Starts at first contact, rather than first sale • Offering value added, getting customer to try • Games, raffles, and promotions – All about incentives • Offer the potential customer something in exchange for his attention • Use the opportunity to teach him about your product • Increase the level of permission © Prof. Karen Clay Permission Marketing • How does Amazon use permission marketing? – What are the incentives for the customer? – How does Amazon teach you about the product? – How does it increase the level of permission? • Godin and the future of Amazon – Where does he see Amazon’s future? © Prof. Karen Clay Permission Marketing • What are some other effective examples of permission marketing? © Prof. Karen Clay Permission Marketing • Repeated interaction – Maintain contact with customers and potential customers – Increase the level of permission, customers give you more information • Learn more about who your customers are – Get customers to tell you what they want • Much more efficient than guessing at value added © Prof. Karen Clay Customers.com • Who are the customers – Focus is on the right (high value) customers • Godin talked about firing low profit customers – In many transactions, not obvious who customer is • Person who pays is often not customer • Who makes decision to purchase – Consumer, could be children or other family members – Business, is often user © Prof. Karen Clay Customers.com • Find out what customers want – Sounds simple, but … • American Airlines – Customers, frequent fliers – Information about flights, frequent flier miles, reservations, movies, baggage – Arrange travel for entire trip • Buy tickets, book hotels and rental cars © Prof. Karen Clay Customers.com • American Airlines – Email • E-savers • Confirmation on every transaction • Hertz – Not wait in line, fill in information each time – Led to Hertz Gold • Store information • Show id and get keys © Prof. Karen Clay Customers.com • iPrint – Design own business cards, letterhead, other print products – Lets customers help themselves • Boeing – Easily purchase spare parts – Access to information about parts, prices, and availability © Prof. Karen Clay Customers.com • Let customers help themselves and each other – Build community • Tends to increase switching costs • Allows company to get feedback directly from consumers • Offer customers value added and they will become repeat customers © Prof. Karen Clay