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 Email Marketing• Targeted Email Newsletters• Intelligent Product Packaging• Online Communities/Message Boards/Chat• Building Loyal• Incentives/Referrals• Customer Customization

Data Mining & Warehousing

CustomerPortal

Web Servers Database

Inventories

Surveys

Cookies

PersonalizedInformation

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

SurveyWhen you were here last, you purchased Brand X chlorine tablets.

Did they work as well as expected?

Next Question

Targeted Advertising

• Email newsletter (customized by customer)

• Email 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acting on outdated or irrelevant information– Capturing information on existing customers to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 BoardPool 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 15000 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 ManScheduled 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 CostsExisting 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

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Organization concerns

Training and Legal Considerations

ASPs,Data Storage, Cookies, Data mining/warehousing, IT Infrastructure

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Act

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Purchasing concerns

Suppliers Organization Recall PrefsDistribution

Banner AdsScreen DesignOnline PromoEmail CouponsE-NewsletterPricing

Linking Help Desk w/ web DBOrder status/historyMessage BoardsRemindersLoyalty