charles schwab innovative the first discount brokerage (1975) the first 24/7 interface in 1975 mid...
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Charles Schwab
Innovative The first discount brokerage (1975) The first 24/7 interface in 1975 Mid 1980’s: Multichannel access In 1984 created the mutual fund supermarket concept: The Schwab Mutual Fund MarketPlace®. The first online trading (1985)– The Equalizer Software (by modem) The first voice-response telephone brokerage (1989) – Telebroker Full-featured online trading service on MS Windows (1993) – StreetSmart – unsustainable cost In 1996, Schwab Internet brokerage service – $39.95 and then $29.95 (compare to others) In 2000, acquired CyberTrader. Became the new engine. In 2000, purchased U.S. Trust – a full service investment firm
1. What is Charles Schwab’s SWOT? 2. Target segment, p. 1, p .10 3. Focal benefits, p. 5 4. Rationale p 11 5. Competitors, Exhibit 1 6. Branding, p. 4 7. Online volume and performance– Fig. 4 8. Commissions– Fig. 1 9. Future – Shift to a new business model. 1975 model? 1982 model? 1993 model? Cybertrader (2000)? 2000
business model? U.S. Trust (2000), Epoch? 2002 business model? Schwab Equity Rating System?
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Relationships
Relationship – A bond between a firm and customers Strong, weak, nonexistent -- Tiers Intellectual, emotional, both -- Branding
Web: Low degree of interpersonal interaction makes it difficult to create bonds.
How to overcome?
Trust
Personalization
Communication
Communities
Trust – The belief that a party’s word or promise is reliable and the party will fulfill its obligations. Customers need to believe that a firm will fulfill the order, deliver high quality, and not misuse information.
How to establish trust on the web?
Independent intermediaries (paypal) and infomediaries Access to other customers’ experiences, live interaction, or both. Offer more information and allow easy search and comparison, as only the
web can offer Share your inventory levels Intelligent agents and live representatives for assistance work risk to your advantage – high perceived risk means increased loyalty Personalization / individualization Communication Communities
Customization requires Data Collection
Secondary Data Past marketing research surveys Other surveys Census information Publications Focus group reports NEWSGROUPS
Primary data collection Surveys Interviews
Database Marketing
Customer Relationship Management
Technologies to maintain long-term customer relationships, including: e-mail databases on individual service needs personalization of automated responses wizards that allow individuals to ask questions auto-response e-mail.
The best CRM practices
Best Practice Site Technology Leverage
Respond quickly Respond within 6 hours if
possible.
Knowledge bases and virtual “intelligent” agents
can provide instant feedback
Provide link to inventory Be sure products are available for delivery
Use extranets and inventory databases linked to e-commerce software
Use automatic order confirmation
Automatically send e-mail confirmations
Confirmations can be sent from databases through
automated e-mail systems
Furnish information Provide product, security, and shipping information
Information delivery can be designed into the web site. A FAQ (frequently asked
questions) allows self-service.
Provide alternative means of contact
800-number phone lines allow customers to place
orders, inquire about orders, or receive service info as
alternative to Internet.
Chat systems can cost less than phone systems.
Avoid extra fees
If offline businesses do not charge for service support
or gift wrapping, these should not be charged
online
Lower costs available through the Internet should
allow services to be delivered at low or no cost
Use Customer Response specialists
Use “live” individuals to support automated service
transactions
Customer response can be facilitated by chats or
trough the use of intelligent agents or wizards
Source: Kleindl, Brad, Strategic Electronic Marketing: Managing E-Business, South-Western College Publishing, 2001, p. 125.
Broadvision
BroadVision is the world's leading supplier of enterprise self-service (ESS) applications and technology that enable organizations to create immediate business value by moving interactions, transactions and services from a resource-centric paradigm to a personalized self-service model that enhances growth, reduces costs and improves productivity.
Broadvision Customers
More than 1,200 leading companies and government entities around the globe use BroadVision-powered applications to enable their enterprise self-service initiatives. They are leveraging the web to their wireless devices to unify and extend their enterprise's applications, information and business processes to better serve their employees, partners and customers in a personalized and collaborative way.
BroadVision's customer base represents a broad spectrum of organizations, including British Telecom, The Boeing Company, E*Trade, Ericsson, FleetBoston Financial, GE Supply, Home Depot, Rockwell Automation, Sears, State of California, Toyota and Vodafone.
Broadvision
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Broadvision Questions
What’s the idea behind one-to-one web sites? What are the advantages of personalization systems? What are the risks in personalization? How can a company maintain trust and privacy with personalization? How to convince customers they have something to gain by disclosing info? What impact will personalization have on selling prices on the web? What is meant by collaborative filtering? Who are the competitors that are
using collaborative filtering to develop applications? What is rules-based system? Which method is better and under what conditions? How is Broadvision’s financial performance? Who are their customers? Who
are their partners? Do you think this company will survive? Why or why not? What are their unique strengths/weaknesses relative to their competition.
New Market research
Faster and cheaper data collection Continuous dialog with customers Tracking of clicks Can track effectiveness of marketing efforts
Clickstream data
The dataset contains one individual’s clickstream for an entire month. Use the data to guess the following about this person: Gender Age Race Marital Status Geographic location in U.S. City size (urban/suburban/rural) Household size Household composition (male and female married, female head of household, male head of household, etc.) Household income Rents or owns Education level of householder Age and presence of children Car or truck ownership Dog or cat ownership
06Jul1999:20:49:31 4 100 http://www.merrysbeanies.com/merrysbeanies/pokadex.htm
06Jul1999:20:51:11 52 132 http://www.merrysbeanies.com/merrysbeanies/pokadex.htm
06Jul1999:20:53:23 51 86 http://www.aol.com/netfind/kids/home.html
06Jul1999:20:54:49 51 219 http://www.merrysbeanies.com/merrysbeanies/pokadex.htm
06Jul1999:20:58:28 50 11760 http://www.blue-planet.com/fun/packman/
07Jul1999:00:14:28 51 74 http://find.web.aol.com/channelfind/mainchannelfind/?query=eric+mccormick
07Jul1999:00:15:42 50 162635 http://www.lycos.com/network/
08Jul1999:21:26:17 4 113 http://www.avonorder.com/ssl/logon.asp
08Jul1999:21:28:10 19 0 http://www.avonorder.com/ssl/verification.asp
08Jul1999:21:28:29 4 43 http://find.web.aol.com/channelfind/mainchannelfind/?query=stargatesg1/cp,
08Jul1999:21:29:12 1 601 http://members.aol.com/anee/
08Jul1999:21:39:13 2 65 http://members.aol.com/anee/
08Jul1999:21:40:18 36 0 http://rda.simplenet.com/stargate/links.htm
08Jul1999:21:40:54 172 172 http://www.e-net.or.jp/user/ncc/1701/rda/
08Jul1999:21:43:46 1 20 http://www.e-net.or.jp/user/ncc/1701/rda06/99sg1.html
08Jul1999:21:44:06 1 5 http://www.e-net.or.jp/user/ncc/1701/rda/