© Prof. Karen Clay

Broadvision Who are the customers? –Firms 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 – 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