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E-Tourism in Europe The E-CRM and ITCs adoption issues: how to retain customers?

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par Myriam LABIDI
ESC Toulouse - Master in Marketing, Communication and Management 2005
  

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5/ E-marketing: providing a reliable and useful customer database

5.1 The Marketing research perspective

The Internet is much more than the automation of online business transaction, it is a way of getting a vast amount of information which were not available in the past. As Marketing is an information processing activity, the Internet is a great source of marketing intelligence constantly up to date. The company's own site makes possible to get information about the customers need and their value.

Consequently, the Internet is a highly valuable tool in the building of a customer information database. The use of cookies, web forms or email feedback is possible. In addition to that simple tools, some software such as Aurum Software's Web Trak are available. With the information gathered, the work force can easily identify prospects, get a better understanding of customer needs and even customised resources in order to increase the customers service level. An online database of transaction histories can be considered as the primary marketing resource of tourism companies. This online database can help to determine what kind of travel products can be delivered, what market segments are the best served, and the lifetime value of each customer to the firm.

5.2 The Customer databases management practises

Developing a better understanding of the customers means that tourism organisations must bring together data from different sources. To that purpose KPMG developed a model for the evolution of customer databases:

-The fist stage of the model implies the storage of data in electronic format by each department of the organisation or by different type of application without the possibility for cross-checking and information sharing.

- The second stage consists in the linking of the different databases in order to automatically passes the information to the others whenever the customer's record is updated in one system.

- The third stage which is the most advanced one implies the development of a data warehouse system. The data warehouse system must be able to analyse customer data and assess its value.

It seems that the vast majority of the tourism companies are maintaining different databases and thus remain at the first stage of the evolution model. These customers databases are mostly used for e-mails sending and notifying customers of future promotions. This lack of consolidated customer databases is due to the development and completion of e-CRM projects which are still underway. In addition, the consolidation of customer databases is a time consuming process which implies significant financial resources due to the high degree of fragmentation of existing data sources.

From a practical point of view, the consolidation of customers databases represents a huge task. It needs to bring together the booking system, the customer knowledge database and the database of the website. It can represent a huge amount of data. However the e-CRM success key is to obtain a coherent view of customers' attitudes and buying habits.

If we examine the practice of the firms, it seems that sometimes the information collected from customers are not enough detailed and do not allow them to target specific customer groups or to provide one-to-one marketing campaigns. However, customers' choice tracking which is a technical function available at most web sites can bring in informative data about the browsing, the concentration of breaks down and thus help to adjust the offers.

Some companies set up web facilities in order to enable customers to create, update and modify their own personal profile. The customers can get information about their travel records. They can also choose the information received, the frequency and the preferred medium (e.g: e-mail, SMS, WAP, printed newsletter).

Other companies implement customer loyalty programmes. The customers are enabled to apply for a subscription card or a "ticket book" online. Then, the customers data are stored in the company's customer database and used in order to offer information about discount, company news...

In addition, we must take into consideration the characteristics and attitude of the customer base. As a matter of fact, customers seem to be less interested in the other services offered online such as newsletter, promotions or additional information.

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