part two: chapter ten creating commitment
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Internet Marketing & e-Commerce Ward Hanson Kirthi Kalyanam Requests for permission to copy any part of the material should be addressed to: PERMISSIONS DEPARTMENT THOMSON BUSINESS and ECONOMICS 5109 Natorp Boulevard Mason, OH 45040 Phone: (800) 423-0563. - PowerPoint PPT PresentationTRANSCRIPT
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Internet Marketing & e-CommerceWard HansonKirthi Kalyanam
Requests for permission to copy any part of the material should be addressed to:
PERMISSIONS DEPARTMENTTHOMSON BUSINESS and ECONOMICS
5109 Natorp BoulevardMason, OH 45040
Phone: (800) 423-0563
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Part Two: Chapter TenCreating Commitment
“No company should ever take for granted ( 認…理所當然 ) the idea that managing customers for loyalty is the same as managing them for profits.”
Reinartz and Kumar, The Mismanagement of Customer Loyalty
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Online Community and Loyalty
• Focused social gathering places
• Multi-directional communication
• Community value > individual value
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Online Community and Loyalty
• Focused social gathering places
• Multi-directional communication
• Community value > individual value
Results?
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Online Community and Loyalty
• (what) Focused social gathering places
• Multi-directional communication
• Community value > individual value
Results? (why online community)
• Online community activities can build good will (信譽 )and lead to word-of-mouth support, donations or purchases
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Online Community and Loyalty
At the Stanford Alumni Association, alumni who
receive e-newsletter @Stanford lead annual giving.
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Online Community: Types and Functions
密切關係
大型入口網站
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Challenges to Creating Community
• Gaining attention and building traffic
• Losing member focus as community grows or changes
• If members disengage, content creation lags (落後 ) and retention drops
• Firms accustomed to controlling the message reluctant to let go
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Signs of a Healthy Online Community
• Content Attractiveness: More content = more value = more members
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Signs of a Healthy Online Community
• Content Attractiveness: More content = more value = more members
• Member Profiles: Opportunity for individual outreach by sponsors
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Signs of a Healthy Online Community
• Content Attractiveness: More content = more value = more members
• Member Profiles: Opportunity for individual outreach by sponsors
• Member Loyalty: Commitment fosters participation, creates audience
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☆ Signs of a Healthy Online Community
• Content Attractiveness: More content = more value = more members
• Member Profiles: Opportunity for individual outreach by sponsors
• Member Loyalty: Commitment fosters participation, creates audience
• Transaction Offerings: Selling linked to interest area attracts other vendors
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Community Tools
• Communication Rings– Email most important community tool– Instant Messaging and SMS (Short
Messages)– Growth of simulations, online gaming tools
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Community Tools
• Communication Rings– Email most important community tool– Instant Messaging and SMS– Growth of simulations, online gaming tools
• Content Trees– Discussion groups, web sites bring
organization and focus to handle flow of information
即時訊息與簡訊
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True Community?
• Optimistic view – Online communities offer new ways of relating, and give companies new ways to build and retain loyal customers
• Pessimistic view – Online tools have stifled (使窒息、抑止 ) true community building and depleted (使減少 ) face-to-face interaction
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True Community?
Male Female
Email 23.50 27.53
Internet browsing 22.10 15.18
Instant messaging 3.31 4.14
Newsgroup/Message boards 3.01 2.20
Chat rooms 2.13 1.65
Creating/Maintaining web sites 2.26 1.47
Social networking 0.53 1.13
Total Internet/Email time 56.84 53.29
Online time, minutes per day from six-hour time sliceSOURCE: Niie, Simpser, Stepanikova and Zheng, ‘Ten Yearks After the Birth of the Internet,’ December 2004
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☆ Member Produced Content
• Less expensive member content results in extensive content areas, often attractive to advertisers
• Member content reflects current interests and issue
• Quality varies, but often very creative
• Access-controlled communities lend credibility to online recommendations
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Member Produced Content
• Other distinguishing features : – Contributions are skewed toward frequent
contributors, which can be promoted– Broad participation can expand and
enhance nature of online discussions
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Member Produced Content
• Other distinguishing features : – Contributions are skewed toward frequent
contributors, which can be promoted– Broad participation can expand and
enhance nature of online discussions
• Potential problems:– Lack of control can result in off-color,
offensive messages– Partial control can create legal exposure
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☆ Community and Customer Insight
• Content attractiveness– Access frequency, content diversity, contributor
edits, emailed articles
• Member Loyalty– Access frequency, access duration, referrals,
church or opt-out rates
• Member Profiles– Database completeness, user update frequency,
email bounces
• Transaction Offerings– Sales revenue, active vendors, customer LTV
(Life Time Value)
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Community and Customer Insight
• Interaction Measures such as email campaigns offer direct measures of community strength
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Community and Customer Insight
• Interaction Measures such as email campaigns offer direct measures of community strength
• Netnography(網路人種學 ) moves traditional social group study of ethnography(人種學 )online – Self-interested helpers– Multiple-motive consumers– Consumer advocates– True altruists(利他主義 )
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Community and Customer Insight
Using email and homepages to identify communities of interest
SOURCE: Culotta, Bekkerman, McCallum, ‘Extracting Social Networks and Contact Information from Email and the Web,’ American Association of Artificial Intelligence, 2004, p.2
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Creating Consumer Dialogue
• Understanding the customer base– Analyzing customer loyalty, profitability– Loyalty programs build commitment– Extending loyalty with switching costs
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Creating Consumer Dialogue
• Understanding the customer base– Analyzing customer loyalty, profitability– Loyalty programs build commitment– Extending loyalty with switching costs
• Building customer dialogue– Email outreach to possible defectors 背叛者– Follow up with high value customers– Tipping points and trigger moments
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Creating Consumer Dialogue
Categories of Switching Costs
SOURCE: Adapted from Burnham, Freis and Mahajan, “Consumer Switching Costs: A Typology, Antecedents, and Consequences,’ Journal of the Academy of Marketing Sciences 31, no. 2 (2003): 109-126
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Creating Consumer Dialogue
Customer state and appropriate contact questions