Personalization in Business & Consumer Markets Managing IT & E-Business EMBA – Spring 2001 Group 0222

Harri’s Pools Business Overview Brick and Mortar No Web Presence Large operation w/ existing database High Touch / Feel Service Very Personal

IT Business Problem Web Presence Personal on the Internet Increased Competition Price Competitive Growing business Product differentiation

IT Business Problem

Web Personalization Tactics Data Mining/Warehousing Customer Privacy Interactive Surveys Targeted Marketing Targeted Newsletters Intelligent Product Packaging Online Communities/Message Boards/Chat Building Loyal Incentives/Referrals Customer Customization

Data Mining & Warehousing Customer Portal Web Servers Database Inventories Surveys Cookies Personalized Information

Data Mining & Warehousing Capture and retain relevant information Track changes in customer preferences Track customer navigation Use cookies for identification

Customer Privacy Take responsibility for customer specific information Do not sell mailing lists Personalization Consortium

Interactive Surveys Information gathering technique Used to enhance the e-experience of our customers Identify buying preferences and target advertising

Example Survey z Pools Survey When you were here last, you purchased Brand X chlorine tablets. Did they work as well as expected? Next Question

Targeted Advertising newsletter (customized by customer) product notification Concerns –Need to gather continuous feedback to avoid acting on outdated or irrelevant information –Capturing information on existing customers to allow immediate personalization

Intelligent Packaging Tracking purchase patterns of customer groups If buying patterns appear, quickly promote products to see if a larger market exists Identify “Power Buyers” –Use them to test new products –Post testimonials On web site Display to customers with similar preferences or buying habits

Online Communities/Message Boards Create knowledge areas –Pool maintenance –Product discussions –Used pool equipment (buying and selling) –New pool owners –Considering buying a new pool? –Ask Harri the pool man Excellent way to gather customer preferences

Message Boards z Pools Message Board Pool Maintenance We just had a dust storm blow through and my pool is full of mud. What is the best way to clean it? 8 responses I have a gallon pool, how often should I change my pool’s filter? 1. Check your maintenance manual 2. Wow I did not know you were supposed to change it! 2 responses

Ask Harri the Pool man Pools Ask Harri the Pool Man Scheduled Times Every odd Monday 4 – 6 pm EST Enter Chat room Username Password

Building Loyalty Unsurpassed customer service Even if competitor has a lower price, the customer will know that the after sales service is worth it. Being able to recall customer preferences –Recalling last purchase and credit card used –Recalling delivery preferences from past purchases Link existing help desk with web database

Switching Costs Rewards program –Similar to airline frequent flyer programs –Instead of lower prices to get sales, reward the customer for repeat buying –Sign up with existing rewards company –Create our own rewards program

Switching Costs Existing Rewards Companies

Switching Cost Referral Program Implement a referral program designed to reward those who send business our way! The incentive program and referral programs are not mutually exclusive.

Customer Customization Pool tips of the day Specific product information (based on customer request) Order status and order history Reminder messages –Maintenance schedules –Personal reminders Local weather Stock information

Benefits More personalization = more actionable data = reduced marketing costs Create repeat business through targeted and up to date customer preferences Higher customer retention Easier to sell to repeat customers Increase revenue per customer with effective implementation of personalization

Implementation Considerations Application Service Providers –Our expertise is pools not IT –Resources required (capital and personnel) –Time to market

Implementation Considerations Data storage/data warehousing IT infrastructure and integration Web strategies Process design and process rule creation Training of employees Legal considerations Logistics

Primary Activities Organization concerns Training and Legal Considerations ASPs,Data Storage, Cookies, Data mining/warehousing, IT Infrastructure Support Activities Purchasing concerns SuppliersOrganizationRecall Prefs Distribution Banner Ads Screen Design Online Promo Coupons E-Newsletter Pricing Linking Help Desk w/ web DB Order status/history Message Boards Reminders Loyalty