E-Marketing Tools and Strategies for Business

Electronic Business
E-Marketing
Tools
BIS, 3rd, sem2, 2012-2013 1

Electronic Business
Marketing:
A comprehensive process that involves
every aspect of a business from designing its
products, setting the pricing strategy to
analyzing sales statistics and collecting
customer feedback.
BIS, 3rd, sem2, 2012-2013 2

Electronic Business
E-Marketing:
Refers to using technology such as the
internet, website and email, sms, including its
wide variety of options and tools to conduct
your marketing activities and achieve your
marketing objectives.
BIS, 3rd, sem2, 2012-2013 3

Electronic Business
E-Marketing tools and strategies
1) Business websites;
2) Search Engine;
3) Email;
4) Online newsletters/e-zines;
5) Online catalogues;
6) Online press releases;
7) Online surveys;
BIS, 3rd, sem2, 2012-2013 4

Electronic Business
E-Marketing tools and strategies, cont..
8) Online customer service;
9) Banner advertising;
10)Affiliate marketing.
11)Mobile telephone marketing;
12)Online Community (Friendster,
YouTube) - new
13)Web Log (Blog) - new
BIS, 3rd, sem2, 2012-2013 5

Electronic Business
E-Marketing Concept
• get the right product
• promoted in the right way
• sold at the right price
• distributed at the right place
• profitably
BIS, 3rd, sem2, 2012-2013 6

Electronic Business
Examples of e-Marketing
• online surveys to conduct market research
• web site to display and sell your products
• internet advertising to promote your
business
• software to collect and analyze your
customer information
BIS, 3rd, sem2, 2012-2013 7

Electronic Business
The Key to successful e-Marketing
• The key to successful e-Marketing in today's
business environment is to
 place your clients in control.
 Allow them to choose how often and
what type of messages they receive
BIS, 3rd, sem2, 2012-2013 8

Electronic Business
The Key to successful e-Marketing, cont..
• This is commonly referred to as Permission
Marketing.
• Your e-Marketing messages and tools should
aim to deliver information that the consumer
wants - that they perceive to be valuable.
BIS, 3rd, sem2, 2012-2013 9

Electronic Business
Integrating E-marketing Into Your Business
• e-Marketing is not an alternative to your
existing Marketing Plan, in fact you may
already have a "Marketing Plan" that identifies
your marketing objectives, outlines your key
strategies designed to achieve those objectives,
and guides your daily marketing activities.
BIS, 3rd, sem2, 2012-2013 10

Electronic Business
Integrating E-marketing Into Your Business,
cont..
• With e-Marketing you can develop techniques
to enhance this existing plan to make your
marketing activities more effective (smarter)
more efficient (cheaper) and you may even
find that you can tap into new markets both
locally and overseas.
BIS, 3rd, sem2, 2012-2013 11

Electronic Business
How Would E-marketing Enhance My
Existing Marketing Plan
• With the use of internet-based product
catalogues you can reduce your printing costs
and maintain a higher quality of product
information for your customers.
BIS, 3rd, sem2, 2012-2013 12

Electronic Business
How Would E-marketing Enhance My
Existing Marketing Plan, cont..
• By utilising marketing information systems
you can analyse your sales information to
make more informed decisions and customers
all over the world can view your products with
a website.
BIS, 3rd, sem2, 2012-2013 13

Electronic Business
The main E-Marketing tools
• Affiliate Program
• Search Engine Optimization
• Email Campaigns
• Banner Exchange
• Business Website
• Mobile Phone Marketing
BIS, 3rd, sem2, 2012-2013 14

Electronic Business
The main E-Marketing tools - Affiliate
Program
Affiliate marketing is where you refer
customers to other businesses via links to their
web site from your web site or emails and
receive commissions for each customer you
refer to the other business.
BIS, 3rd, sem2, 2012-2013 15

Electronic Business
Program, cont..
Conversely, you can set up your own
affiliate marketing program to have other
businesses sell your products and services for
you by paying them a commission.
BIS, 3rd, sem2, 2012-2013 16

Electronic Business
The main E-Marketing tools - Affiliate
Program
BIS, 3rd, sem2, 2012-2013 17

Electronic Business
The main E-Marketing tools- Affiliate
Program - Affiliate Types
Commission Based (www.Amazon.com )
Flat-Fee Based (www.paypal.com)
Click-Through Based (www.overture.com )
Banner-Impression Based
(www.doubleclick.com)
BIS, 3rd, sem2, 2012-2013 18

Electronic Business
The main E-Marketing tools - Affiliate
Program - Affiliate Advantages
1)Increased sales.
2)Improves search engine link popularity.
3)The Internet becomes your sales team.
4)Low operating costs.
5)Sites with affiliate programs could be
perceived as more significant.
BIS, 3rd, sem2, 2012-2013 19

Electronic Business
Program - Affiliate Disadvantages
1. Potentially expensive up-front costs.
2. Administrative overhead.
3. Accounting overhead.
4. Some profits go to the affiliate.
BIS, 3rd, sem2, 2012-2013 20

Electronic Business
The main E-Marketing tools - Search Engine
Optimization
Search engine optimisation is the process
of getting your web site address or URL as
close as possible to the top of the search results
when someone using the search engines is
looking for the products you sell.
BIS, 3rd, sem2, 2012-2013 21

Electronic Business
Optimization - Search Engine Tips
1. Submit Web site to search engine
(http://google.com/addurl).
2. Use keywords in the content near the top of
the document.
3. Keywords placed inside clickable link text
ranks higher.
BIS, 3rd, sem2, 2012-2013 22

Electronic Business
Optimization - Search Engine Tips, cont..
4. Use descriptive Web page titles.
5. Use a descriptive URL, for example:
www.webmastercertification.com/webmast
er-courses.cfm.
6. Encourage other sites to link to yours.
BIS, 3rd, sem2, 2012-2013 23

Electronic Business
Optimization - Click Popularity Search
Engines
1) http://www.yahoo.com 2) http://www.google.com
3) http://www.altavista.com 4) http://www.excite.com
5) http://www.lycos.com 6) http://www.msn.com
7) http://www.aol.com 8) http://www.askjeeves.com
9) http://www.nbci.com 10) http://www.iwon.com
BIS, 3rd, sem2, 2012-2013 24

Electronic Business
The main E-Marketing tools - Email
Campaigns
Email campaigns are targeted emails that
work much like conventional direct mail
campaigns. They come in various forms such
as direct email, newsletters, newsgroups, and
press releases.
BIS, 3rd, sem2, 2012-2013 25

Electronic Business
Campaigns - newsletters
• Newsletters, in this case, are email messages
distributed by a company or organization to an
opt-in list on a set schedule. Newsletters
typically announce sales, specials, schedules,
events, product releases, as well as a payload
of useful information that makes the
newsletters newsworthy.BIS, 3rd, sem2, 2012-2013 26

Electronic Business
Campaigns – newsletters
• There are two types of marketing opportunities
with newsletters. You can either offer your
own newsletter or you can advertise in
someone else's newsletter.
BIS, 3rd, sem2, 2012-2013 27

Electronic Business
Campaigns - Newsgroups
A newsgroup is a kind of electronic bulletin
board where people who are interested in like
subjects can post and respond to
conversational "threads" or topics. There are
literally thousands of newsgroups hosted all
over the world, and covering every
conceivable topic about which humans
converse.BIS, 3rd, sem2, 2012-2013 28

Electronic Business
Campaigns - press releases.
 An Internet press release is the same as a
traditional press release except it is internet
based.
 The idea is to send a document to a news
provider with the hope they find your
document newsworthy enough to publish.
BIS, 3rd, sem2, 2012-2013 29

Electronic Business
The main E-Marketing tools –
Email types
o Spam Email
oOpt-out Email
oOpt-in Email
BIS, 3rd, sem2, 2012-2013 30

Electronic Business
The main E-Marketing tools - Email types -
Spam Email
A sharp line divides email marketing from
spam. Basically email marketing is solicited
email (requested), and spam is non-solicited
email (not requested).
BIS, 3rd, sem2, 2012-2013 31

Electronic Business
The main E-Marketing tools - Email types
Opt-out Email
• Opt-out email is email sent to target groups
who have shown an interest in a specific topic.
Once the email is received, the recipient has
the option to "unsubscribe" from receiving
further email from you.
BIS, 3rd, sem2, 2012-2013 32

Electronic Business
Opt-out Email , cont..
• Opt-out email is considered solicited email
because at some point the recipient filled out a
form somewhere that landed them on a list of
people who have agreed to receive email.
BIS, 3rd, sem2, 2012-2013 33

Electronic Business
Opt-out Email , cont..
 Opt-out email is often mistaken for spam since
you don't specifically ask for opt-out email.
BIS, 3rd, sem2, 2012-2013 34

Electronic Business
Opt-in Email
• Opt-in email is email that has been specifically
requested. This email approach will be well
received by your target audience since they ask
you to send it to them.
BIS, 3rd, sem2, 2012-2013 35

Electronic Business
Opt-in Email
• The recipient must explicitly request to be
placed on your opt-in list, or you run the risk
of looking like a spammer.
BIS, 3rd, sem2, 2012-2013 36

Electronic Business
Banner Exchange
• A banner advertisement is an image placed at
the top or bottom of a web page, to catch the
viewer's eye and possibly prompt them to click
on it.
BIS, 3rd, sem2, 2012-2013 37

Electronic Business
Banner Exchange, cont..
• It can either be static, that is, simply like a
billboard displaying the name of a website, or
dynamic, encouraging the user to click on the
banner image to be transferred to that website.
BIS, 3rd, sem2, 2012-2013 38

Electronic Business
Business Website
A company tells customers and potential
customers where to find their website on the
internet by giving them the address (or URL)
of their home page. From the home page, you
can get to all the other pages on their site.
BIS, 3rd, sem2, 2012-2013 39

Electronic Business
Business Website, cont..
Web sites may be very complex and consist
of hundreds of pages of information and even
provide the ability for your customers to
purchase your products on the internet.
Alternatively, they can be quite simple,
consisting of only a few pages that do little
more than inform your customers of your
businesses address and contact details.BIS, 3rd, sem2, 2012-2013 40

Electronic Business
Mobile Phone Marketing
Mobile telephone marketing is the use of
mobile phone technologies such as voice, text
and multimedia message services to promote
products/services to consumers.
BIS, 3rd, sem2, 2012-2013 41

Electronic Business
Mobile Phone Marketing
Currently, the main mobile telephone
technologies used for e-Marketing are:
• Short Message Service (SMS)
• Multimedia Messaging Service (MMS)
• Wireless Application Protocol (WAP)
• General Packet Radio Service (GPRS)
BIS, 3rd, sem2, 2012-2013 42

Electronic Business
eBusiness Seminars (3)
1. Eportals
2. epayments
3. CMS
BIS, 3rd, sem2, 2012-2013 43

Electronic Business
Enterprise Resources
Planning
(ERP)
BIS, 3rd, sem2, 2012-2013 44

Electronic Business
Enterprise Resources Planning (ERP)
 Enterprise resource planning (ERP) is an
enterprise-wide information system designed
to coordinate all the resources, information,
and activities needed to complete business
processes such as order fulfillment or billing.
BIS, 3rd, sem2, 2012-2013 45

Electronic Business
 An ERP system supports most of the business
system that maintains in a single database the
data needed for a variety of business functions
such as Manufacturing, Supply Chain
Management (SCM), Financials, Projects,
Human Resources and Customer Relationship
Management (CRM)
BIS, 3rd, sem2, 2012-2013 46

Electronic Business
 An ERP system is based on a common
database and a modular software design. The
common database can allow every department
of a business to store and retrieve information
in real-time. The information should be
reliable, accessible, and easily shared.
BIS, 3rd, sem2, 2012-2013 47

Electronic Business
 The modular software design should mean a
business can select the modules they need,
mix and match modules from different
vendors, and add new modules of their own to
improve business performance
BIS, 3rd, sem2, 2012-2013 48

Electronic Business
• Ideally, the data for the various business
functions are integrated. In practice the ERP
system may comprise a set of discrete
applications, each maintaining a discrete data
store within one physical database.
BIS, 3rd, sem2, 2012-2013 49

Electronic Business
• The term ERP originally referred to how a
large organization planned to use
organizational wide resources. In the past, ERP
systems were used in larger more industrial
types of companies. Today the term can refer
to any type of company, no matter what
industry it falls in. In fact, ERP systems are
used in almost any type of organization – large
or small.BIS, 3rd, sem2, 2012-2013 50

Electronic Business
BIS, 3rd, sem2, 2012-2013 51

Electronic Business
o ERP system modules
An ideal ERP system is when a single
database is utilized and contains all data for
various software modules. These software
modules can include:
BIS, 3rd, sem2, 2012-2013 52

Electronic Business
o ERP system modules
• Manufacturing
• Financials
• Human Resources
• Supply Chain Management (SCM)
• Projects
• Customer relationship management (CRM)
• Data WarehouseBIS, 3rd, sem2, 2012-2013 53

Electronic Business
ERP system modules
BIS, 3rd, sem2, 2012-2013 54
54
Employees
Managers and
Stakeholders
Central
Database
Reporting
Applications
Human
Resource
Management
Applications
Financial
Applications
Manufacturing
Applications
Inventory
And Supply
Applications
Human
Resource
Management
Applications
Service
Applications
Sales and
Delivery
Applications
Sales Force
And Customer
Service Reps
Customers Back-office
Administrators
And Workers
Suppliers

Electronic Business
o Main ERP vendors
• Baan
• JD Edwards
• Oracle
• PeopleSoft
• SAP
BIS, 3rd, sem2, 2012-2013 55

Electronic Business
Main ERP vendors
BIS, 3rd, sem2, 2012-2013 56
ERP Vendors Revenue
6.5
0.394
5.6
2.07
0.894
10.86
1.74
0.32
1.02
10.1
0
1
2
3
4
5
6
7
8
9
10
11
12
SAP PeopleSoft Oracle Law son J.D. Edw ards
BillionsofDollars
2001
2000

Electronic Business
o Why ERP
• To integrate financial data.
• To standardize manufacturing processes.
• To standardize HR information.
BIS, 3rd, sem2, 2012-2013 57

Electronic Business
o ERP Project
• Real transformational ERP efforts will usually run
between 1 to 3 years, on average.
• Short implementations (3 to 6 months):
– small companies,
– implementation limited to a small area of the company, or
– the company only used the financial pieces of the ERP system.
• The important thing is not to focus on how long it will
take but to understand why you need ERP and how you
will use it to improve your business.
BIS, 3rd, sem2, 2012-2013 58

Electronic Business
o How ERP improve business performance
• Improving integration, flexibility
• Fewer errors
• Improved speed and efficiency
• More complete access to information
• Lower total costs in the complete supply chain
• Shorten throughput times
• Sustained involvement and commitment of the top
managementBIS, 3rd, sem2, 2012-2013 59

Electronic Business
o How ERP improve business performance, cont..
• Reduce stock to a minimum
• Enlarge product assortment
• Improve product quality
• Provide more reliable delivery dates and higher
service to the customer
• Efficiently coordinate global demand, supply and
production
BIS, 3rd, sem2, 2012-2013 60

Electronic Business
o ERP risks
• Expensive (can costs 100 thousands to
millions of dollars)
• Time-consuming (can take months to
years)
• Great risk for the organization
• Transfer of Knowledge
• Acceptance with the companyBIS, 3rd, sem2, 2012-2013 61

Electronic Banking
What is E-banking
Electronic banking, also known as e-
banking, virtual banking and online banking, is
a service that allows customers to access their
bank information, conduct financial
transactions, make deposits, withdrawals and
pay bills through the Internet without having to
physically visit their bank.
BIS, 3rd, sem2, 2012-2013 63

Electronic Banking
What is E-banking
Also, Internet banking (e-banking) is
defined to include the provision of retail and
small value banking products and services
through electronic channels as well as large
value electronic payments and other wholesale
banking services delivered electronically.
BIS, 3rd, sem2, 2012-2013 64

Electronic Banking
History
 The concept of electronic banking systems
began when the first automated teller
machines (ATMs) were installed in the
1970s.
 ATM machines allowed deposits to be made
from remote locations—a convenience for
customers who otherwise would have had to
withdraw cash personally from their bank.
BIS, 3rd, sem2, 2012-2013 65

Electronic Banking
History, cont..
 The advantages offered by ATM machines
quickly spilled over to encompass other
areas of bank services, computerizing
manual systems for greater efficiency and
time savings.
BIS, 3rd, sem2, 2012-2013 66

Electronic Banking
History, cont..
 The concept behind ATM machines gave
rise to smart cards, intranet and Internet
banking, EFT (electronic funds transfer) and
POS (point of sale) systems, phone banking
and other electronic services.
BIS, 3rd, sem2, 2012-2013 67

Electronic Banking
Fundamental characteristics
 Traditional Banking
Traditional banking was time-consuming.
A person would have to physically walk into a
bank, fill out a deposit slip, wait in line and
wait some more while the teller processed his
transaction.BIS, 3rd, sem2, 2012-2013 68

Electronic Banking
Fundamental characteristics
 Electronic Banking Transactions
Electronic banking allows anyone with a
telephone, computer or bank card to access
his/her account without ever crossing a bank's
threshold. Electronic banking includes, among
other things, electronic bill pay, funds transfer,
balance retrieval and cash advances. It also
includes direct deposit.
BIS, 3rd, sem2, 2012-2013 69

Electronic Banking
Levels/Scope of e-banking business
Basic information e-banking
Simple transactional e-banking
Advanced transactional e-banking
BIS, 3rd, sem2, 2012-2013 70

Electronic Banking
 Basic information e-banking
Is a web sites that just disseminate
information on banking products and services
offered to bank customers and the general
public;
BIS, 3rd, sem2, 2012-2013 71

Electronic Banking
 Simple transactional e-banking
Is a web sites that allow bank customers to
submit applications for different services,
make queries on their account balances, and
submit instructions to the bank, but do no
permit any account transfers;
BIS, 3rd, sem2, 2012-2013 72

Electronic Banking
 Advanced transactional e-banking
Is a web sites that allow bank customers to
electronically transfer funds to/from their
accounts pay bills, and conduct other banking
transaction online.
Usually, e-banking refers to types II and III.
BIS, 3rd, sem2, 2012-2013 73

Electronic Banking
Current development situations (in industrial
countries)
 E-banking products and services are getting
more and more advanced and increasing in
variety. From providing information at the
early stage to providing transactional
activities.
BIS, 3rd, sem2, 2012-2013 74

Electronic Banking
Current development situations (in industrial
countries), cont..
 Both volume and share in the total banking
business are getting bigger and bigger very
fast
 E-banking customer base is getting bigger
quickly.
BIS, 3rd, sem2, 2012-2013 75

Electronic Banking
Status in developing countries
 Developing countries are:
in catching up in e-banking
BIS, 3rd, sem2, 2012-2013 76

Electronic Banking
Impact of E-banking on traditional banking
• The early conventional wisdom: Internet
banking would destroy the traditional
banking business model and promote the
entry of newcomers from the outside of the
banking industry.
BIS, 3rd, sem2, 2012-2013 77

Electronic Banking
Impact of E-banking on traditional
banking, cont..
• Developing countries could have the
“opportunities to leapfrog” in the adoption
of efinance on a large scale.
• In reality, e-banking develops fast, but not
damaging as conventional wisdom
projected.
BIS, 3rd, sem2, 2012-2013 78

Electronic Banking
banking, cont..
• The notion of leapfrog has not worked in
many developing countries due to various
impediments.
BIS, 3rd, sem2, 2012-2013 79

Electronic Banking
banking, cont..
• already visible, including a high level of
acceptance of technology by customers and
financial institutions….H(h)owever, most
projects have not yet been deployed on a
large scale.
BIS, 3rd, sem2, 2012-2013 80

Electronic Banking
banking, cont..
• It provides a comprehensive look at the
status of efinance in developing countries.
It covers arrange of areas related to e-
finance including e-banking, e-payments,
e-trades, and e-credit information
BIS, 3rd, sem2, 2012-2013 81

Electronic Banking
banking, cont..
• Even in industrial countries, e-banking is
still a complementary tools to traditional
banking. Lots of pure e-banking businesses
have been forced out of market.
BIS, 3rd, sem2, 2012-2013 82

Electronic Banking
banking, cont..
• Internet-only banks have been substantially
less profitable. They generate lower
business volumes and any savings
generated by lower physical overheads
appear to be offset by other types of non-
interest expenditures, notably marketing to
attract new customers.BIS, 3rd, sem2, 2012-2013 83

Electronic Banking
• Banking consumers today have more options
than ever before:
–“brick and mortar” institution
(has a building and personal service
representatives)
–“brick and click” institution
(physical structure + Internet bank services)
–“Virtual bank”
(no public building – exists only online)BIS, 3rd, sem2, 2012-2013 84

Electronic Banking
• Traditional banking business assumes:
–Customer desk at bank’s building
–Office hours from 8.00 am to 7.00 pm
BIS, 3rd, sem2, 2012-2013 85

Electronic Banking
• Logical solution is to use e-channels:
–Internet
–WAP based mobile network
–Automated telephone
–ATM network
–SMS and FAX messaging
–Multipurpose information kiosks
–Web TV and others …
BIS, 3rd, sem2, 2012-2013 86

Electronic Banking
 E-channels enable financial transactions from
anywhere and allow non-stop working time.
 Therefore, E-Bank is transforming banking
business into e-Business through utilizing e-
Channels
BIS, 3rd, sem2, 2012-2013 87

Electronic Banking
BIS, 3rd, sem2, 2012-2013 88
• Customers’ requests are:
–Non-stop working time
–Using services from
anywhere
• E-channels
provide:
–Working time 0
- 24h
–Great flexibility

Electronic Banking
More E-banking advantages:
• Possibility to extend your market
(even out of country)
• Possibility to process more financial
transactions
• Possibility to lower your transaction cost
BIS, 3rd, sem2, 2012-2013 89

Electronic Banking
• Electronic Banking Services
Electronic banking services are designed to
provide banking customers with the capability
to conduct banking business remotely through
personal computers and other electronic
devices .
BIS, 3rd, sem2, 2012-2013 90

Electronic Banking
Electronic Banking Services
• Types of Services
Electronic banking comprises personal
computer (PC) banking through
1. traditional proprietary communication
channels
BIS, 3rd, sem2, 2012-2013 91

Electronic Banking
• Types of Services, cont..
2. retail and corporate Internet banking
services,
3. telephone banking, and
4 potentially other forms of remote
electronic access to banking services.
BIS, 3rd, sem2, 2012-2013 92

Electronic Banking
While electronic banking services have
been oriented toward retail customers, many
banking organizations are now offering small
business applications and corporate cash
management services via the Internet.
BIS, 3rd, sem2, 2012-2013 93

Electronic Banking
These services typically include payroll,
automated clearing house (ACH), and wire
transfers. Wholesale banking services, which
have been conducted electronically for many
years, are also beginning to move from
proprietary networks and communications
channels to the Internet.BIS, 3rd, sem2, 2012-2013 94

Electronic Banking
Telephone banking, a fairly conventional form of
electronic banking, is provided by many institutions.
Telephone banking services generally allow
customers to check account balances and transactions
and pay bills through touch-tone or voice response
systems.
BIS, 3rd, sem2, 2012-2013 95

Electronic Banking
A few banking organizations are also beginning
to offer consumer products and services through
wireless devices, such as cellular telephones, pagers,
personal digital assistants (PDA), palmtop computers,
or other devices that can provide wireless access to
institution’s services, either directly or via the
Internet .BIS, 3rd, sem2, 2012-2013 96

Electronic Banking
• Operations
There are a variety of operational methods
for providing electronic banking services.
Banking organizations may perform their core
data processing internally but outsource the
Internet banking activities to a different vendor
or service provider.
BIS, 3rd, sem2, 2012-2013 97

Electronic Banking
• Operations, cont..
A dedicated workstation at the financial
institution is often used to transmit transaction
data files between the institution’s core
processing system and the Internet application,
and to allow the financial institution to update
parameters and perform other maintenance
activity.BIS, 3rd, sem2, 2012-2013 98

Electronic Banking
• Operations, cont…
Alternatively the Internet banking service
provider may interface directly with the bank’s
core processing service provider if that
function is also outsourced.
BIS, 3rd, sem2, 2012-2013 99

Electronic Banking
In addition, many banking organizations
now purchase Internet banking services from
their primary core processing service provider,
eliminating the need for external data
transmissions .
BIS, 3rd, sem2, 2012-2013 100

Electronic Banking
Even with this structure, the institution
maintains a local workstation to provide access
to customer information or perform other
administrative and maintenance functions for
the Internet banking system.
BIS, 3rd, sem2, 2012-2013 101

Electronic Banking
Other institutions operate an electronic banking
system in their own computer facilities by purchasing
an “off-the-shelf” or “turnkey” electronic banking
software application from one of the vendors of such
software and installing the software on their own
system.
BIS, 3rd, sem2, 2012-2013 102

Electronic Banking
• Operations, cont.
Choices in turnkey options vary from the bank’s
purchase and use of templates or modules, where the
bank chooses from a selection of standard services, to
more complex situations where the software vendor
designs and develops the electronic banking software
application to the bank’s specifications.
BIS, 3rd, sem2, 2012-2013 103

Electronic Banking
E-banking
Strategies
BIS, 3rd, sem2, 2012-2013 104

Electronic Banking
• E-banking offers vast opportunities, yet even
less than one in three banks have an E-banking
strategy in place.
• According to a study, less than 15 percent of
banks with transactional websites will realize
profits directly attributable to those sites.
BIS, 3rd, sem2, 2012-2013 105

Electronic Banking
• Hence, banks must recognize the seriousness
of the challenge ahead and develop a strategy
that will enable them to leverage the
opportunities presented by the Internet.
• No single E-banking strategy is right for every
banking company. But whether they adopt an
offensive or a defensive posture, they must
constantly re-evaluate their strategy.
BIS, 3rd, sem2, 2012-2013 106

Electronic Banking
• In the fast-paced e-economy, banks have to
keep up with the constantly evolving business
models and technology innovations of the
Internet space. Early e-business adopter like
Wells Fargo not only entered the E-banking
industry first but also showed flexibility to
change as the market developed.
BIS, 3rd, sem2, 2012-2013 107

Electronic Banking
• The pressure is now building for all banks to
develop sound e-business strategies that will
attract and retain increasingly discriminating
customers.
• The major problem with the banks, which have
already invested huge amounts in their online
initiatives, is that their online offerings remain
unprofitable.
BIS, 3rd, sem2, 2012-2013 108

Electronic Banking
• Though banks have enrolled some existing
customers in their online programs, they are
not getting customers in large numbers. This
has made banks wonder whether there is any
value in the online channel. Just enrolling
customers for online banking may not be
sufficient until and unless they use the site
actively.
BIS, 3rd, sem2, 2012-2013 109

Electronic Banking
• Banks must make efforts to increase their site
usage by customers and effectively co-ordinate
the online channel with branches and call
centers. Then only they will be able to derive
maximum value that includes cost reduction,
cross-selling opportunities, and higher
customer retention.
BIS, 3rd, sem2, 2012-2013 110

Electronic Banking
• Customers have some rational reasons for
staying offline. Some of these reasons include:
usability features of the site,
concerns about security and
frequent complaints that signing up is
complicated and time-consuming.
BIS, 3rd, sem2, 2012-2013 111

Electronic Banking
• Banks can solve these problems by refocusing
investment on improving the site’s basic
functionality and user-friendliness, and
avoiding advanced features that most
customers neither understand nor value.
BIS, 3rd, sem2, 2012-2013 112

Electronic Banking
• Developing advanced features that appeal to a
relatively small numbers of customers, creates
far less value than strengthening core
capabilities and getting customers to use them.
Banks must make efforts to familiarize
customers with their sites and show them how
easy and efficient the online channel is to use.
BIS, 3rd, sem2, 2012-2013 113

Electronic Banking
• Integrating the online channel with the rest of
the bank is another important issue that banks
must focus upon. This is important because
nearly all the value of the online channel is
realized offline _ in cross sales completed in
other channels and in cost reductions.
BIS, 3rd, sem2, 2012-2013 114

Electronic Banking
• An actively used online channel should also
serve as a medium to sell banking services for
the branch staff, the call center, and the
relationship manager. Integrated channels
working together are far more effective than a
group of channels working without any
coordination.
BIS, 3rd, sem2, 2012-2013 115

Electronic Banking
• To facilitate this integration, banks must
formulate paths that people in various
customer segments are likely to take among
the channels. The interactions in each channel
can then be worked around these paths.
BIS, 3rd, sem2, 2012-2013 116

Electronic Banking
• For example, a call center representative must
work out which channel(s) the customer used
before coming to her, and which channel(s) the
customer is likely to visit next. Each channel
must have entry and exit points that must
welcome customers and then send to other
channels. Hence, the overall goal of banks is to
create a seamless multichannel experience.
BIS, 3rd, sem2, 2012-2013 117

Electronic Banking
• On the other hand, those banks that are
planning to build their online businesses will
have to understand several strategic issues like
do they have the right business model for E-
banking? How should they price their E-
banking products and services?
BIS, 3rd, sem2, 2012-2013 118

Electronic Banking
• Bankers planning to move into E-banking have
to explore different options, make investments
and have to develop a variety of partnerships.
They have to put their time and efforts to
identify the best opportunities. In the case of
traditional banks, if they are too aggressive in
using price incentives to build their e-business,
they risk the profitability of their traditional
business.BIS, 3rd, sem2, 2012-2013 119

Electronic Banking
• However, if they do not offer sufficient price
incentives for customers to bank online, their
efforts to build a sound e- banking business
may not fructify.
BIS, 3rd, sem2, 2012-2013 120

Electronic Banking
• Banks have to be creative in rethinking
organizational structures and management
processes. Traditional banks that are
conservative in nature may find it difficult to
attract and retain online talent.
BIS, 3rd, sem2, 2012-2013 121

Electronic Banking
• Moreover, getting people in the traditional
business to help build an e-enterprise would
not be an easy task. To make all this happen,
requires a major revision of incentive systems,
planning and budgeting processes, and
management roles. Banks can exploit the
opportunities provided by the Internet if they
demonstrate courage, use their imagination,
and take decisive action.BIS, 3rd, sem2, 2012-2013 122

Electronic Banking
• While most of the banks have started focusing
on E-banking activities, a new challenge in the
form of mobile banking has emerged. M-
Banking is both an additional opportunity for
banks to offer their online services and an
additional channel from which to access new
customers and cross-sell to existing customers.
BIS, 3rd, sem2, 2012-2013 123

Electronic Banking
• Rapidly changing lifestyles of customers and
their demand for more speed and convenience
has subdued the role of branch banking to a
certain extent. With the proliferation of new
technologies, disintermediation of traditional
channels is being witnessed.
BIS, 3rd, sem2, 2012-2013 124

Electronic Banking
• Banks can go beyond their traditional role as a
channel for banking/financial services and can
become providers of personalized information.
They can successfully leverage m-banking to:
BIS, 3rd, sem2, 2012-2013 125

Electronic Banking
• Provide personalized products and services
to specific customers and thus increase
customer loyalty.
• Exploit additional sources of revenue from
subscriptions, transactions and third-party
referrals.
BIS, 3rd, sem2, 2012-2013 126

Electronic Banking
• M-Banking gives banks the opportunity to
significantly expand their customer
relationships provided they position
themselves effectively. To leverage these
opportunities, they must form structured
alliances with service affiliates, and acquire
competitive advantage in collecting,
processing and deploying customer
information.BIS, 3rd, sem2, 2012-2013 127

Electronic Banking
BIS, 3rd, sem2, 2012-2013 128
E-Banking
&
Customer Relationship

Electronic Banking
• E-Banking and Customer Relationship
BIS, 3rd, sem2, 2012-2013 129

Electronic Banking
CRM - A powerful Tool for Customers
Relations
• Help to exploit sales potentials and maximize
the value of the customer to the bank.
• CRM integrates various components of a
business such as sales, marketing, IT and
accounting.
BIS, 3rd, sem2, 2012-2013 130

Electronic Banking
Relations, cont..
• It will add customer loyalty to the business.
• Relatively new method in managing customer
loyalty, previously used by retail businesses
for many years
BIS, 3rd, sem2, 2012-2013 131

Electronic Banking
Relations, cont..
• The core objective of modern CRM
methodology is to help business to use
technology and human resource to gain abetter
view of customer behavior
BIS, 3rd, sem2, 2012-2013 132

Electronic Banking
Objective of CRM in Bank
Main objectives to implement CRM in the
business strategy are:
• To simplify marketing and sales process
• To make call centers more efficient
• To provide better customer service
• To discover new customers and increase
customer revenues
• To cross sell products more effectivelyBIS, 3rd, sem2, 2012-2013 133

Electronic Banking
BIS, 3rd, sem2, 2012-2013 134

Electronic Banking
BIS, 3rd, sem2, 2012-2013 135

Electronic Banking
BIS, 3rd, sem2, 2012-2013 136

Electronic Banking
BIS, 3rd, sem2, 2012-2013 137
CRM implementation strategy

Electronic Banking
BIS, 3rd, sem2, 2012-2013 138

Electronic Banking
BIS, 3rd, sem2, 2012-2013 139

E-Marketing Tools and Strategies for Business

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à E-Marketing Tools and Strategies for Business

Similaire à E-Marketing Tools and Strategies for Business (20)

Dernier

Dernier (20)

E-Marketing Tools and Strategies for Business