Christian Zeidler Mobile Support in Customer Loyalty Management

Transcription

1 Christian Zeidler Mobile Support in Customer Loyalty Management

2 GABLER EDITION WISSENSCHAFT Mobile Computing Herausgegeben von Univ.-Prof. Dr. Otto Petrovic Mobilfunkdienste haben Wirtschaft und Gesellschaft in den letzten Jahren nachhaltig verändert. Noch nie hat sich eine Technologie so rasch weltweit verbreitet auch nicht das PC-basierte Internet. Neben Sprachdiensten gewinnen Datendienste zunehmend an Bedeutung und viele sehen das Mobiltelefon bereits als den Massencomputer der Zukunft an. Die Schriftenreihe publiziert hervorragende Forschungsarbeiten aus dem Gebiet des Mobile Computing. Diese untersuchen Phänomene wissenschaftlich fundiert und geben somit wichtige Impulse für Entscheidungsträger in Unternehmen. Besonderer Wert wird auf eine integrierte Betrachtung von Technologie, Wirtschaftlichkeit und Anwenderakzeptanz gelegt.

3 Christian Zeidler Mobile Support in Customer Loyalty Management An Architectural Framework With a foreword by Univ.-Prof. Dr. Otto Petrovic GABLER EDITION WISSENSCHAFT

4 Bibliographic information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at Dissertation Karl Franzens Universität Graz, 2008 Veröffentlicht mit Unterstützung der evolaris next level Privatstiftung im Rahmen des graduate research opportunity program (GROP). 1st Edition 2009 All rights reserved Gabler GWV Fachverlage GmbH, Wiesbaden 2009 Editorial Office: Claudia Jeske / Anita Wilke Gabler is part of the specialist publishing group Springer Science+Business Media. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holder. Registered and/or industrial names, trade names, trade descriptions etc. cited in this publication are part of the law for trade-mark protection and may not be used free in any form or by any means even if this is not specifically marked. Cover design: Regine Zimmer, Dipl.-Designerin, Frankfurt/Main Printed on acid-free paper Printed in Germany ISBN

5 Foreword Companies are increasingly faced with the fact that the communication habits of their customers have changed sustainably not only through the use of the Internet, but even more through the use of mobile services. Traditional marketing and communication instruments are increasingly being supplemented or even replaced by the direct, personalized address of the customer. The most powerful tool for this kind of communication is the mobile phone. It provides a direct and interactive communication channel to the customer. For numerous people, the mobile phone is no longer simply perceived as another medium, but rather as an indispensable part of daily life, even as part of their personality. At the same time, it is not only used for telephony, but also as a central communication and information hub. While the Internet is increasingly leaving the traditional personal computer, and conquering the mobile phone, the sending of messages via mobile phone has been a standard way of communicating, not only for young audiences. This suggests the assumption that the direct communication channel will be used strongly by marketers in the near future in order to attract new customers and provide extended services to existing ones. Since it is such a powerful tool, its use represents a particular challenge for companies as it represents the direct, sensitive connection to the heart and mind of the customer. The presented work thus examines the question of how existing loyalty programs can be supported by mobile services to adapt to the customers true worlds of communication. The author combines the technological potential of current and future mobile services with the requirements of the Relationship Marketing to answer these questions. A key result of this work is the presented reference model for mobile supported loyalty. Based on the reference model, the current business models in the area of loyalty programs and possible transformations through the integration of mobile services are discussed. In the final step the author describes the evaluation process of the results through the application of the model within case studies from the fields of banking, retail and multi-partner programs. Through this integrated perspective, based on a sound technological basis as well as economic considerations, a result emerged that provides a scientific investigation into a real phenomenon within the selected area of work, and develops practical solutions

6 VI Foreword in the application field. The largest challenge now remains the sustainable transformation of the real value system in which loyalty programs are embedded. Only then can these programs live up to the evolving worlds of communication of their members. Prof. Dr. Otto Petrovic

7 Preface At this point, I would like to take the opportunity to thank all those who have supported and encouraged me in the last few years, and have made possible the presented work. In this context, first and foremost, I want to thank my supervisor, Univ.-Prof. Dr. Otto Petrovic, for his numerous suggestions during the development of the research question and support in methodological issues. Univ.-Prof. Dr. Reinhard Haberfellner deserves my thankfulness for the willingness to conduct the second assessment and to take on the related effort. Furthermore, I would like to thank my colleagues at the evolaris research lab, particularly Mrs. Corrina Höll, Dr. Christian Kittl, Mr. Kurt Köstenbauer, and Mr. Hans Jörg Peyha who continuously supported me in all problems of the workday life of a research project. Special thanks belong to my partner Barbara, my parents, my sister, and all my relatives for their constant support and motivation. Therefore, I would like to dedicate this work to my family. Dr. Christian Zeidler

8 Contents List of figures... XV List of tables... XVII 1 Introduction and problem frame Background and setting of the research topic Research question and expected results Relevance and contribution of the work Practical problem frame Theoretical problem frame Research methodology and classification of the thesis Research concept Methodological approach Structural approach Requirements derived from relationship marketing and customer loyalty The aim and emergence of marketing paradigms Roots of relationship marketing The evolution and dominance of the transactional approach The emergence of modern relationship marketing The institutionalisation of customer relationship management Relationship marketing theories as a foundation for the mobile supported loyalty scheme Evaluation criteria for theory selection for the mobile supported loyalty scheme Theories of the neo-institutional paradigm Theories of the neo-behavioural paradigm Neoclassic relationship marketing theories Evaluation of theories for the mobile supported loyalty scheme Theory derived functions for the mobile supported loyalty scheme... 36

9 X Contents 2.3 Customer relationship management as the operationalisation of relationship marketing Customer relationship instruments for the acquisition phase Customer relationship instruments for retention management Customer relationship instruments for recovery management Further instruments of relationship management One-to-one dialogue oriented marketing approaches and loyalty schemes Recency, frequency, and monetary customer value indicator Loyalty scheme mechanisms and components Customer communication in current loyalty schemes The role of customer rewards in loyalty schemes The value of data for relationship management Opportunities for interactive media in the marketing mix Interactive elements in online retailing Interactive media and corporate communication strategies Interactive instruments in customer relationship management Mobile infrastructure perspective on the loyalty framework Interaction channels supported by mobile devices Voice communication services Messaging services Mobile internet services Multimedia support Rich applications Mobile devices and services: use and adoption The adoption of mobile technology Operating systems and software Mobile networks Mobile services Characteristics of mobile services Economical characteristics of mobile services A classification for mobile marketing applications... 96

10 Contents XI Characteristics of mobile marketing applications Objectives of mobile marketing Mobile marketing application types The integrated product development process for mobile software Idea generation and evaluation Business model and business case development Legal aspects Market research and user experience design Implementation and testing The reference model for the mobile supported loyalty scheme Information systems as enabling technology for mobile relationship marketing Lessons learnt from the Internet as a sales and marketing channel Computer support in the marketing process A layered architecture for the mobile supported loyalty scheme Presentation layer elements Controller layer elements and business logic Domain layer and entity representations Data mapping layer and data source abstraction The reference modelling approach Construction of the reference model Application of reference models Functional requirements for mobile supported loyalty schemes A formal representation of the social penetration theory s personality model Supporting the social penetration process Monitoring and management of the interaction of relationship entities Functional features for the reference model Modules of the framework for mobile supported loyalty schemes The underlying data model for relationship status representation Data analysis and sources of business intelligence

11 XII Contents Workflow management and rule-based communication Mobile interaction elements for the framework Communication infrastructure Supporting multichannel communication Customer facing functions and outbound communication modules System integration, data collection and analysis Integrating legacy Systems Aggregating information from external data sources Customer insight and knowledge through data mining methods Analysis of business models for the mobile supported loyalty scheme The business case for mobile supported loyalty Elements of loyalty return Business model design fundamentals Definition of the term business model Elements of the business model Business models in mobile business The value architecture for mobile business Mobile third party service providers Loyalty systems business models Technology provider business models Service provider business model A business model for the provisioning of mobile supported loyalty schemes The role as a mobile third party service provider The role as a loyalty system provider Business model components Reference model evaluation Evaluation through case study research Banking industry case study Applied elements of the reference model Identification and design of the mobile customer touch points System integration

12 Contents XIII Results from program operation Retail industry case study Applied elements of the reference model Identification and design of the mobile customer touch points System integration Results from system analysis and design Multi-partner program operator case study Applied elements of the reference model Identification and design of the mobile customer touch points Results from system analysis and design Overview of evaluated reference model elements Results and recommendations The reference model for mobile customer communication Implications for practitioners Opportunities for future research Bibliography

13 List of figures Figure 1: The research process... 7 Figure 2: Information activities of buyers and sellers (Bruhn 2003) Figure 3: Personality model according to the social penetration theory (Altman and Taylor 1973) Figure 4: Social penetration theory s interaction model (Bruhn 2003) Figure 5: The social penetration process (Bruhn 2003, Georgi 2000) Figure 6: Operational instruments of relationship marketing (Bruhn 2003) Figure 7: Learning from data in one-to-one marketing systems (Gillerson et al. 1999) Figure 8: Companies with websites (Statistik Austria 2007b) Figure 9: Total number of SMS sent in Austria (RTR 2007) Figure 10: Mobile subscribers per 100 inhabitants (International Telecommunication Union) Figure 11: Number of mobile contracts (RTR 2007) Figure 12: Calling minutes in Austria (RTR 2007) Figure 13: Smartphone operating system market share of sales 2006 (Symbian) Figure 14: Mobile platform and API overview (ARCchart 2007) Figure 15: Mobile network evolution (Alcatel 2007) Figure 16: Morphological box of mobile marketing instances (Pousttchi and Wiedemann 2006) Figure 17: The new product development process for mobile software and services Figure 18: Marketing information system according to Li et al Figure 19: Data model for the representation of the personality breadth Figure 20: Data model for the representation of the personality depth Figure 21: Data model for the representation of content categories and customer category matching Figure 22: Relations among product categories Figure 23: Linking the transactional and relationship views

14 XVI List of figures Figure 24: Representation of the reference model's data model Figure 25: Data model element with external data sources Figure 26: Hierarchical representation of analysis functions in the reference model Figure 27: Workflow components and interfaces (Hollingsworth 1995) Figure 28: Mobile customer touch points Figure 29: Data integration strategy for the reference model Figure 30: Customer net present value change in percent for a five percent increase in customer retention (Reichheld 1996) Figure 31: Customer lifetime profit pattern in different industries (Reichheld 1996) Figure 32: Elements of the business model (adapted from Stähler 2001) Figure 33: Traditional role of the value added service provider (Neudorfer 2003) Figure 34: Mobile business chain (Neudorfer 2004) Figure 35: Role of the third party service provider Figure 36: Results from clustering of users based on transaction data (y-axis = number of transactions) Figure 37: Satisfaction of participants with the mobile service (evolaris) Figure 38: Mobile features as an extension to the existing loyalty program Figure 39: Process model for the loyalty program with mobile features

15 List of tables Table 1: Research question... 3 Table 2: Relationship marketing theories... 5 Table 3: Overview of relationship marketing theories (adapted from Bruhn 2003) Table 4: Requirements towards theories (adapted from Bruhn 2003) Table 5: Dimensions of the social penetration process Table 6: Evaluation of relationship marketing theories Table 7: Dimensions and drivers of the social penetration process Table 8: Definition of an electronic service Table 9: Definition of a mobile service Table 10: Aggregated view on customer interactions by product category and channel Table 11: Requirements derived from the personality model Table 12: Requirements derived from the process model Table 13: Requirements derived from the model of follow-on interactions Table 14: Requirements derived from relationship marketing instruments Table 15: List of major functional requirements and identifiers Table 16: Factors influencing the adaption of mobile loyalty services Table 17: List of evaluated reference model elements