The Customer Is in Charge
| Category: Database Marketing | Date: 2001-07-04 |
Q: What balance should clickstream data have in comparison to recency, frequency and monetary value in customer profiles? Some Web sites collect data anonymously, either through clickstream analysis or no-name questionnaires. How widespread is this, and can it be used to custom-generate pages for other anonymous site visitors who fit a similar profile?
A: Everyone knows that capturing consumer information is a way of life for most Web sites. Data is being gathered both overtly and covertly. For example, businesses such as American Online and DoubleClick use navigational data to determine which areas of their services are the most popular. But right now theyre the hot seat for not fully disclosing that they also collect information about individual users. Both companies are powerhouses in the e-universe, but in a tricky position explaining the extent of their tracking of online habits.
The allure of Web logs and "cookies" to help determine who is a new or recurring customer is obvious. When tied into a dynamic database of customer purchases or a CRM system, they can be powerful real-time marketing agents for a company. If a Web site is database-driven, it can deliver real-time content based on relevant or affinity characteristics. This means that if someone logs onto an airline site and has in the past indicated an interest in Fiji, a "smart" database can welcome the customer back by name and begin to deliver information about Fiji. If the visitor has indicated a time of year as best for Fiji travel, the database can deliver information about Fiji during that period. Or it can present purchasing incentives to encourage the visitor to book now.
Sure, some entities like AOL claim they dont watch users travel on the Web. But AOLs system does automatically track users movements within its proprietary services -- like chat rooms, e-mail and news services -- where users spend a whopping 85% of their time.
So, AOL is probably sitting on a larger wealth of consumer information than any other entity, especially when you consider that AOL, like DoubleClick, with their respective purchases, Time Warner and Abacus, have additional information on the reading, listening and catalog-ordering habits of collectively more than 80 million households.
But data isnt worth anything if you dont know what it means. A number of companies like Broadbase, Broadvision and Annuncio are developing powerful software that will track, measure and deliver content to a visitor. Add in the information that can be purchased from Experian, Acxiom and Carol Wright and marketers have a ton of data to work with. So yes, it is easy to develop dynamically delivered custom-content Web pages to consumers.
But the question remains: Are consumers comfortable with the in-time delivery of promotions and information not requested by them? It is up to them to tell us, because the customers are in charge now. If we as marketers push the envelope too hard, we are in violation of customers privacy. Keeping and attracting customers today means maintaining a delicate balance between privacy and profits.
Q: I believe in ensuring consistency for customers when they shop the multiple channels offered by our company. But each channel clearly has unique challenges and opportunities. Of particular concern are promotional offers. Some make more sense for certain channels (like free shipping and handling) while others are more difficult to deliver across all channels (loyalty rebates). Do you propose emphasizing the unique attributes of each channel or striving for consistent treatment across all channels?.
A: As I note above, in todays world, the customer is in drivers seat. This means the answer is obvious: Let the customer decide where and how he or she wants to be contacted. Granted, leaving it up to the customer to respond isnt the most efficient management method in the world. The nature of what you market may help guide your path. For example, if your product is of a sensitive or personal nature, letting the customer lead the way will show you respect their privacy . Offer opt-in or dial-in systems that allow the customer access to your promotions when and where they want to view them. If you must go for a more mass market approach to please the front office, I would address direct mail pieces to "Smith Household." This eliminates the intrusion or possible violation of personal privacy. Within the mailing, you could direct your prime target to go to a private Web site and examine a special offer exclusively for them. Setting up a series of passwords can allow the prospect or customer to have access to specific information regarding their account or special merchandise offers.
It is difficult to try to have all the information available within all channels of communication. We have learned that online, customers thrive on anonymity. Provide the right catalyst and people will be knocking your door down.
About the author.
:To contact see details below.
DBMarkets@aol.com
http://www.msdbm.com
A: Everyone knows that capturing consumer information is a way of life for most Web sites. Data is being gathered both overtly and covertly. For example, businesses such as American Online and DoubleClick use navigational data to determine which areas of their services are the most popular. But right now theyre the hot seat for not fully disclosing that they also collect information about individual users. Both companies are powerhouses in the e-universe, but in a tricky position explaining the extent of their tracking of online habits.
The allure of Web logs and "cookies" to help determine who is a new or recurring customer is obvious. When tied into a dynamic database of customer purchases or a CRM system, they can be powerful real-time marketing agents for a company. If a Web site is database-driven, it can deliver real-time content based on relevant or affinity characteristics. This means that if someone logs onto an airline site and has in the past indicated an interest in Fiji, a "smart" database can welcome the customer back by name and begin to deliver information about Fiji. If the visitor has indicated a time of year as best for Fiji travel, the database can deliver information about Fiji during that period. Or it can present purchasing incentives to encourage the visitor to book now.
Sure, some entities like AOL claim they dont watch users travel on the Web. But AOLs system does automatically track users movements within its proprietary services -- like chat rooms, e-mail and news services -- where users spend a whopping 85% of their time.
So, AOL is probably sitting on a larger wealth of consumer information than any other entity, especially when you consider that AOL, like DoubleClick, with their respective purchases, Time Warner and Abacus, have additional information on the reading, listening and catalog-ordering habits of collectively more than 80 million households.
But data isnt worth anything if you dont know what it means. A number of companies like Broadbase, Broadvision and Annuncio are developing powerful software that will track, measure and deliver content to a visitor. Add in the information that can be purchased from Experian, Acxiom and Carol Wright and marketers have a ton of data to work with. So yes, it is easy to develop dynamically delivered custom-content Web pages to consumers.
But the question remains: Are consumers comfortable with the in-time delivery of promotions and information not requested by them? It is up to them to tell us, because the customers are in charge now. If we as marketers push the envelope too hard, we are in violation of customers privacy. Keeping and attracting customers today means maintaining a delicate balance between privacy and profits.
Q: I believe in ensuring consistency for customers when they shop the multiple channels offered by our company. But each channel clearly has unique challenges and opportunities. Of particular concern are promotional offers. Some make more sense for certain channels (like free shipping and handling) while others are more difficult to deliver across all channels (loyalty rebates). Do you propose emphasizing the unique attributes of each channel or striving for consistent treatment across all channels?.
A: As I note above, in todays world, the customer is in drivers seat. This means the answer is obvious: Let the customer decide where and how he or she wants to be contacted. Granted, leaving it up to the customer to respond isnt the most efficient management method in the world. The nature of what you market may help guide your path. For example, if your product is of a sensitive or personal nature, letting the customer lead the way will show you respect their privacy . Offer opt-in or dial-in systems that allow the customer access to your promotions when and where they want to view them. If you must go for a more mass market approach to please the front office, I would address direct mail pieces to "Smith Household." This eliminates the intrusion or possible violation of personal privacy. Within the mailing, you could direct your prime target to go to a private Web site and examine a special offer exclusively for them. Setting up a series of passwords can allow the prospect or customer to have access to specific information regarding their account or special merchandise offers.
It is difficult to try to have all the information available within all channels of communication. We have learned that online, customers thrive on anonymity. Provide the right catalyst and people will be knocking your door down.
About the author.
:To contact see details below.
DBMarkets@aol.com
http://www.msdbm.com
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