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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