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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.