Extranets
Extranets were introduced in Chapter 3. Since they require a user to log in they signify differ-
ential services through premium content and services. Many options are possible. A dynamic
example of using an extranet is the use of the web to host online events that mirror trad-
itional events such as seminars, trade shows and user group conferences, virtual seminars
with a guest speaker by webcast, virtual trade shows where exhibitors, seminar speakers and
Mini Case Study 9.8
When HSBC Bank International (HBIB) refined its website it wanted to use personalisation with the goal of
delivering specific offers and servicing to different customer segments and encourage customers to move
into more valuable segments. This would enable it to capitalise on sales opportunities that would otherwise
be missed. New Media Age (2007) reported that this was a challenge since ‘60% of total weekly visitors to
offshore.hsbc.com log on to the internet banking service, HSBC wanted to market to them effectively while
they were engaged in this task, disrupting their banking experience without infuriating them’. Business rules
were created to serve promotions dependent on the type of content accessed and the level of balance in
the customer’s account.
HSBC was successful in meeting its goals and the results show the benefit of personalised, targeted ban‑
ners. On average, New Media Age (2007) reported that the new banners had an 87.5% higher clickthrough
rate than non‑ personalised banners (6.88% versus 3.67%). The number of savings accounts opened via
Internet banking increased by 30% (based on six months pre‑ and post‑ launch). And the number of non‑
Premier customers upgrading to Premier accounts (requiring a balance of £60,000 or more) increased by
86% (based on four weeks pre‑ and post‑ launch of the targeted banners).
HSBC uses personalisation to deliver tailored propositions
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Part 2 Strategy and applications
delegates are linked by the web. Dell Computer has a special brand variant known as Dell
Premier that can be used to provide value- added services for key accounts. Other traditional
retention methods such as loyalty schemes and sales promotions translate well to the online
environment.
The use of extranets presents a barrier to entry, particularly if users lose their passwords.
To limit this effect RS Components sends out password reminders to help retention. A Dutch
insurer combined online and offline techniques to use an extranet to deliver mass customisa-
tion. Existing customers were divided into six segments and then contacted through a direct
mail campaign. Members of each segment were given one of six passwords, so that when they
accessed the extranet there were six different versions of content for the website giving prod-
uct suggestions and offers consistent with the segment. Extranets provide good traceability
of marketing outcomes and tagging of visitors. In this case the effectiveness of the campaign
in terms of response rate from the email and conversion to sales could also be monitored for
different segments.
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