Hugues Rey Digital Channel Management 2009 Solvay

Channel Management 2009
e-Business 2.0

Hugues Rey

Hugues Rey - A boring list … ? ;-)
• Belgian (Brussels) – 41 years old – Married
• 17 years of Media & Digital Strategy Experience
– MediaBrands Brussels (IPG): Chief Strategy Officer (2008 - …)
– Initiative Europe Middle-East Africa (IPG): Digital Director (2007 - 2008)
– FastBridge Brussels (IPG) : Founder / Managing Director (2000 - 2007)
– Initiative Media Brussels (IPG): Research & Development Director (1998 – 2000)
– Mindshare Brussels (WPP): Research Manager (1992 – 1998)
• (Main) Lectures at International & Local Conferences
– I-Com Conference - Berlin (9/2005) (Metriweb: The Full Single Source)
– IAB France - Paris (1/2006) (International Online Planning: Added Value ?)
– Association of Communication Executive (ACE) – Brussels (2/2006) (New Technologies and Communication)
– EGTA (European Group of Television Advertising) – Helsinki (4/2006) (IPTV: Are you ready for TV 2.0?)
– IAB Greece – Athens (12/2006) (Test ! Learn ! Deploy ! A key to Digital Marketing)
– BrandFestival – Budapest (9/2007) (The Whispers of the Crowd!)
– Belgian Management & Marketing Association (1/2008) – (Is Social Networking Something Advertisers Can Ignore ?)
– ISE Digital Out-Of-Home Business Conference (2/2009) – Amsterdam – (DOOH: A Brave New World ?)
• Teacher of digital communication skills at University of Brussels
• Industry Presence
– Past-President of Interactive Advertising Bureau Belgium (IAB) (2001-2002) – Founding Father & Member of the Board (1998 –
2009)
– Chairman of the Internet commission of the Centre for Information about Media (CIM) (1998 - ... )
– Past-Member of the Board of Belgian Management and Marketing Association (BMMA) (2001 - 2005) and the Group for Reflexion
and Planning (GRP) (1998 – 2007)
• Business Degree (Marketing)
– Université Libre de Bruxelles - Solvay Business School (1992)

Do want to meet the « real » Hugues Rey ?

+ 32 / 496 26 06 88
Messenger: hugues@live
Mail: hugues.rey@mediabrands.be
Blog: www.rey.be
Twitter: huguesrey
Second Life: Yugs Bournemouth
Linkedin:
http://www.linkedin.com/in/huguesrey

Channel vs Communication

29 09 2009 22 10 2009
E-Business Webvertising

Agenda

• Introduction to e-Channel Management
• Reality of the digital channels and its users in
Belgium
• 2.0 - … Hype or more ?
• The Channel Management & the Marketeer
• Conclusions - Recap of the Best Practices

Channel Management

www.spy.org.es/upload/actuacion/imagen-35.jpg

What is Channel Management ?
• Sales channels (being the conduits by which we
distribute our products to the end-user) come in
many shapes—from direct, to the web, to the
traditional retail environment.
– What is the most efficient and effective approach?

• Channel management, as a process by which a
company creates formalized programs for selling
and servicing customers within a specific
channel

Channel Management
is basically about …
• Goals.
– Define the specific goals you have for each channel segment. Consider your goals for the
channel as a whole as well as individual accounts. And, remember to consider your goals for
both acquisition and retention.
• Policies.
– Construct well-defined polices for administering the accounts within this channel. Be sure to
keep the unique characteristics of each segment in mind when defining policies for account
set up, order management, product fulfillment, etc.
• Products.
– Identify which products in your offering are most suited for each segment and create
appropriate messaging. Also, determine where your upsell opportunities lie.
• Sales/Marketing Programs.
– Design support programs for your channel that meet THEIR needs, not what your idea of their
needs are. To do this, you should start by asking your customers within this segment, “how
can we best support you in the selling and marketing of our products?” That being said, the
standard considerations are product training, co-op advertising, seasonal promotions, and
merchandising. Again, this is not a one-size fits all, so be diligent about addressing this
segment’s SPECIFIC needs in these areas.

Focus for today

Business « e » Customer
E-business
Intelligence Relationship
Management

Front – end
Visible to customer

E-business
Components
Supply Chain Enterprise
Management Back – end Ressource
operations Planning

E-Business is part of the True Economy

Integration Level – What’s your opinion ?

Integration Level – Belgian Example

Car Banks

Club

Belgian Digital Basics
Internet
• 65 % of Total 15+
• 5 days / week
• 60 % of the time spent is Social Media
Mobile
• 105 % coverage but … 9 % 3G
IDTV
• +/- 1.300.000 HH (25%)
• Digital but weakly interactive (low ad)
DOOH
• First Network in Knokke

10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
90,0

0,0
GOOGLE.BE
LIVE.COM
FACEBOOK.COM
MSN.BE
YOUTUBE.COM
WIKIPEDIA.ORG
BING.COM
NETLOG.COM
BLOGGER.COM
TELENET.BE
SKYNET.BE
EBAY.BE
3SUISSES.BE
KAPAZA.BE
NIEUWSBLAD.BE
YAHOO.COM
HLN.BE
TRUVO.BE
SKYROCK.COM
IMMOWEB.BE
(source: Comscore 06/09 – Target: 15 +)

DEXIA.BE
WORDPRESS.COM
ZITA.BE
FORTISBANKING.BE
DAILYMOTION.COM
Social Websites

LAREDOUTE.BE
Digital in Belgium is Social

OVER-BLOG.COM
FLICKR.COM
ING.BE
MYSPACE.COM

IKEA.COM

A Landscape in mutation (Metriweb 11/2003 – 10/2008)
Out: Portals In : Social Network - Web Tv - Dailies
2003 2008
Monthly Monthly
Rk Regular users Rk Regular users 2008/2003
M S N Belgium 1 2.370.931 M S N Hotmail 1 5.053.270 ///
Skynet 2 1.496.044 M S N Belgium Website 2 3.837.858 162%
Telenet Breedband 3 814.599 Skynet Website 3 2.864.716 191%
M S N Member Directory 4 984.291 HLN.be - 7sur7.be Website 4 2.325.784 -
Belgacom Net 5 515.721 NETLOG 5 2.171.720 -
Infobelcom 6 455.388 VRT media 6 1.780.157 ///
Tiscali 7 453.820 Het Nieuwsblad 7 1.696.202
Pages d’Or - Gouden Gids 8 622.252 Pagesd'or - Gouden Gids 8 1.622.408 261%
De Standaard Online 9 325.289 Zita Website 9 1.421.514 175%
Start Be 10 490.034 SKYROCK Website 10 1.396.947 -
LookNmeet 11 296.096 Kapaza 11 1.370.916 -
Le Soir en ligne 12 260.906 2dehands.be - 2memain.be 12 1.353.640 -
Tijd Net 13 197.193 De Standaard Online 13 1.083.329 333%
Vdab 14 274.345 Immoweb 14 888.843 414%
TV1 15 254.050 Vlan Website 15 856.124 ///
VTM 16 337.338 Dailymotion 16 849.645 -
Références.Vacature.com 17 340.766 LeSoir.be Website 17 740.178 284%
Sport.be 18 198.653 De Tijd Website 18 737.045 374%
Scarlet 19 176.801 RTL INFO 19 720.573 ///
Gazet van Antwerpen 20 177.636 CommentCaMarche 20 717.296
Rendez-Vous (fr) 21 124.717 Gazet van Antwerpen 21 667.116 376%
Immoweb 22 214.606 GARAGE TV 22 617.296 -
Ad Valvas 23 218.252 SeniorenNet 23 610.346
Place.to.be 24 148.178 koopjesnet.be 24 608.074
DH Net 25 133.094 Zoom in TV 25 607.836 -

Worldwide 875 mio consumers shop online
Source Nielsen 12/07

More than 85% of the world’s population with an Internet connection has
already bought something online.
De online worldwide shopping market has grown for more than 40% for the
last 2 years.

Books are the most popular (41%)
Clothing/Accessories/Shoes (36%)
Video’s /dvd’s/games (24%)
Flights (24%)
Electronics (23%)

Belgian e-Commerce Market figures
Source BeCommerce 05/08

2005 : 339mio €
2006 : 675 mio€ +99%
2007 : 989 mio€ +46%
2008 : 1236 mio € +25% expectations

D’après Ogone, le leader en solution de paiement en Belgique, le nombre total
de transactions est passé de 4,5 millions en 2007 à 6,4 millions en 2008. Soit
une augmentation de 42 %.

New rules – Same Game ? What about 2.0 ...

http://www.flickr.com/photos/kamshots/

The world is changing – Is it ?
5 trends affecting consumer’s relationships with brands

One Data overload
Two Blurring boundaries “ We always overestimate what will change
the next 2 years, and under-estimate what will
Three Time-pressure change the next 10 ”
Bill Gates
Four EnvironMENTAL
Five New Networked Self

“Web 2.0” ? – 6 Rules !

Harnessing the collective intelligence

Lightweight programming models (Mash Up,...)

Unique, hard-to-recreate data sources

Above the level of single device

The web as platform

Leveraging the long tail through customer self-service

BVBA / Strands : Multi Devices

A 100% customizable interface, personalized
suggestions, and versions for the iPhone,
Blackberry and Nokia phones are some of the
unique characteristics of BBVA Tú cuentas,
being offered to BBVA customers.

Harnessing Collective Intelligence

• Network effects from user contributions are the key
to market dominance in the Web 2.0 era
– Wikipedia
– E-Bay
– LinkedIN
– Skype
– Folksonomy
– Social Network
– …
– And of course – Blogs

Unique, hard-to-recreate data sources
• The race is on to own certain classes of core
data: location, identity, calendaring of public
events, product or people identifiers and
namespaces

• Example: e-Bay seller information

• Example: Amazon also introduced their own
proprietary identifier, the ASIN, which
corresponds to the ISBN where one is present,
and creates an equivalent namespace for
products without one.

Barclays France – 2.0 = Mass
Customerization
« Sur un même écran, nos clients
regroupent
les comptes à consulter (
professionnel, gestion
d’actifs, épargne… ), accèdent en
temps réel
aux informations du CAC 40,
souscrivent
un crédit à la consommation,
gèrent leur
portefeuille boursier et peuvent
même ajouter
une photo ! » Michel Frétard.

Barclays France – 2.0 = Mass
Customerization
• Une hausse de 35% du trafic sur le site web
• Une solution totalement personnalisable par
l’utilisateur (choix des tableaux de bord,
photo, accès en temps réel aux données des
marchés boursiers…)
• Une approche du web centrée sur la vision du
«consommateur » et non sur celle du
banquier

Lightweight programming models
• Syndication, not coordination
– RSS

• Design for "hackability" and
remixability !
– Ajax = isn't a technology. It's
really several technologies,
each flourishing in its own
right, coming together in
powerful new ways

• Mash Up & Widgets

Digital Channel Marketing Management: 5 fields for optimizatio

http://www.flickr.com/photos/8998965@N05/

As Marketeer
Digital Channel Management is about …
Benefits
Organisation
Business
Model

Perceived
Benefits for
Improvements the end user
– Ease of
Usage

Activation Synergies

Benefits of e-business
• The opportunity to reduce costs of production by reducing
overheads - for example, not having a retail outlet in a busy high
street location with high rents, reducing stock costs etc
• The opportunity to increase sales
• The opportunity to access new markets across the globe
• The chance to target market segments more effectively
• Provide more accurate information and improve customer service
experience
• Improves the efficiency of the supply chain
• Improve employee motivation through more flexible working
methods
• Allowing 24/7 access to the firm's products and services
• Provides convenience and comfort for customers

Process Innovation
X-Mediation

Dell Computer:
A Direct Seller
of Computers

Benefits: Lower cost of information: Amazon.com
Buy together / Suggestion / Statistics / other consumer comments

(1) Buy Together

(2) Suggestion

(3) Statistics

(4) Share Comments & Rate

Benefits: New structure of the product
Apple i-tunes music store

I tunes & the long tail
How big? 5 billion!

This is no rumor, because Apple has just announced that iTunes
Store's customers purchased and downloaded more than 5 billion
songs, while the iTunes Store also has the largest music catalog
online, with over 8 million tracks. Even more, the iTunes Store is
now renting over 50,000 movies daily, turning it into the most
popular movie store, too, with a catalog of over 20,000 TV
episodes, over 2,000 films, of which over 350 are available in HD
quality.

Music was the basecamp for the App !
July 2008 US MP3 market share: 73.4%
iPod, 8.6% Sandisk, 2.6% Microsoft,
15.4% other
iTunes is the largest music distributor
over Wal-Mart, Best Buy, others
iTunes has over 8.5 million songs, 125k
podcasts, 30k episodes of TV shows,
2.6k Hollywood movies and 3k
applications for iPhone and iPod touch
App Store: 100 million app downloads
in 60 days
App Store: More than 3k applications,
90% priced less than $10, 600 total apps
are free

www.bivolino.com – Mass Customerization

Longer Value Chain
Intermediation

Business Model
Unique Information + Model
• Unlike other travel companies, Farecast predicts when a user should buy a
ticket based upon 175 billion points of previous airfare data. Its engine can
currently predict whether airfare goes up or down up to a week into the
future with a claimed success rate of 70-75%. While Farecast has a lot of
competition, they claim it is the only company which can predict future
prices.
• Same Model for hotels

Consumer Voice is Cristal Clear

What’s in it for the consummer ?
10before10 study - 2007
I would switch to another brand if I could
buy this other brand online
4% 65% B
I would change my opinion, if I was
23% 37%
dissatisfied with the website

I would switch brands if I had access to
interesting promotions (for another brand) 28% 36%
via the internet
Agreement (Top 2)
Cars are not fit to be sold via the internet 37% 20% B Disagreement (Bottom 2)

Before I purchase a car I fin d important to
look up info online
62% 7% C
After I purchase a car, I find importnat to
have the possibility to look up additional 67% 7% A
product info on the web
I think it's important for cars
manufacturers to have a well designed 73% 4% C
website

What do the expect to find on a
website ?

Brand Website is more
perceived as
source of info
than a sale channel

Perceived Drawbacks of online banking
Source: Cyberscan 11

LESS SECURITY

NO ERROR FREE

LESS PROTECT
PRIVATE LIVE

LESS ADVICE

e-Bankers
COMPLEXITY Internet Users

0 10 20 30 40 50 60

Perceived Advantages of online banking
Source: Cyberscan 11

24H/24H

SAVING TIME

BETER CONTROL

FROM
EVERYWHERE
e-Bankers
LOWER COST Internet Users

0 20 40 60 80 100

Ease of usage: www.snba.be
Easy = To the point !
• Home page heart = Booking engine

• Cross-Sales clearly identified

Ease of usage: www.snba.be
Easy = Clear process
• Seamless selection of base criteria
– Destination – Date – Number of people – Children (Y/N) – Type of flight
• 5 clear steps

• Notre but est que flySN.com soit le meilleur endroit pour faire
du commerce en ligne, un outil ultra performant et pas
seulement une présentation des services de SN
– Bruno Brusselmans, e-Business Manager de la compagnie.
•

Ease of usage: Keytrade Homepage

Client Prospect

Ease of usage:
Does anyone need all this content ? (2006)

Master Class Marketing

Ease of usage:
Does anyone need all this content ? (2008)

Ease of usage:
Better identification, better personalization

Cookie
Retention
Technologie
s
Manual User ID

Content Personalization « My Site »

ID vs Content: Example: NY Times

Next Steps ? Augmented Reality

www.rey.be

Synergy & Strategy
• Define channel role
– From pre-sale to after-sale
• Stick to the « natural » customer
– Coherence
– Integration (Stocks, …)
– Channel optimization
• Organize
– Specific Company vs Manage internal conflict
• Range of Product / Services

Role of e-channel
Range of Services-Products
• Pre-Sales (ex: car, …)
• Larger Offer (ex: Delhaize wine world,…)
• Alternative Offer (ex: Flash Sales, …)
• Specific Offer – Mass Customerization (ex:
Kickers, Bivolino,…)
• 3rd Party Resselers (Cdiscount, …)
• Post-Sales / Registration

Pricing
• Price could be the model … -
• Convenience … +
• Exclusivity… +

• Up-selling
• Cross-selling

Delhaize Store & www.delhaizewineworld.be
Synergy = Leader off & on + complementarity
•Delhaize •Delhaizewineworld.be
– 400 points of sales in Belgium – 1.400 references ! (Thematic
– « the » Belgium reference for search)
wine in supermarket • Re-inforce the Leading postion
• Wine = First Shelf in the store – 2.700 Visitors / Day
– Average bottle sold = 5€ – Average bottle sold = 15€
– 3% of the total sales
• +/- 1800 bottles/Day
– Drive traffic to the stores

Ethias – Integrated communication
0800/… + www.ethias.be

How to be efficiently found?
Traffic Management !

Digital Channel Traffic builders

Managing the …

Return On Investment
• ... is more than just optimizing the clicks (cost & numbers)
• … is to understand
– which kind of « ad »
– on which website
– at which time
• … is developing the most direct impact on the advertiser
business (prospect – leads - subscription – sales)
Adserver Tracking

Tracking – Dexia Example

Confirmation
Clicks
Subscription
Landing

Demo

Info
Views

Conversion x Websites x CTR/VTR
• 58.009 clicks on creatives

• 53.305 actions on the landingspage

26%
• 13.895 people starting with filling in the subscription form

12%
• 6.141 surfers who really subscribed

• 44% of the subscriptions due to direct click on
• creations vs 56% via viewthrough

Reporting with
post click tracking example
Cost / Conversion (client confirmation) x Website

Conversion Average Cost /
avg. CTR Clicks
bevestiging Cost / Click Conversion

MSN 0,74% 10.040 9 0,46 € 513,2 €
Tijd 0,46% 537 27 4,65 € 92,5 €
Tiscali 0,12% 457 10 4,46 € 203,8 €
Skynet 0,29% 2.477 17 2,74 € 399,2 €
De Standaard 0,14% 1.485 12 2,54 € 314,3 €
Beweb - 3.819 13 1,00 € 293,8 €
Total - 23.710 105 1,12 € 253,9 €

As a reminder
Traffic is Multi-source

Constant Improvement is about …

• New functionalities
– No Gadgets – but solutions !
– Cross Products (On/Off)
• Channel analytics and correct KPI’s setting
(according to your objectives)
• Usability – Better interface

Constant improvement example
E-Bay buys Skype !
• E-bay’s success is (basically) based on
– A high number of products due to the digitalization
and the network
– Number of members -> Number of transactions
– Security (if you stay in the model, e-bay guarantees
you a certain level of security)
– Trust between the members

Thalys – Cybelys:
Web + SMS + Cybelys Card = Ticketless & Paperless !

Usability

• Clarity and elegance of interaction within a
web site
– Learnability (e.g. intuitive navigation)
– Efficiency of use
– Memorability
– Few and non-catastrophic errors
– Subjective satisfaction

Usability – Some technics
• Live test on panel
– Filmed
– Record verbalization
– Eye tracking movement (see example later)
– Mouse mouvement
– Memorization (Short and long term) of the interface
– …
• Modelization
– How to organize data and process for users
• Ergo-Layouts
– Base for the designers
• (Re) - Design

Usability – Example: Eye Tracking

Web analytics & KPI’s
• Web analytics is the measurement of the
behaviour of visitors on a website.
• Technically: smart analysis of the logfiles crossed
by behaviour of the users
• Defining the KPI’s
– Primary goal organization
– Primary goal of channel
– Goal of individual section

– Identify & define succesful visit profiles
– What are « desired behaviors » for visitors

Example of Top KPI’s x Goal
•Customer Acquisition •Lead Generation
– Sart a new account sign-up
– Request more info
– Application Download
– Pre-approval/Qualification – E-mail submission
– Locate an agent – Contact an agent
– Webinar subscription
•Customer Retention
– % of account (x time) active in a
period •Cost Reduction
– Account asking for additional – Direct Traffic to the website
information – E-mail / Call generate from the
web
•Customer Cross-Sell – Number of web section reach
– Accounts per household
– % of customer viewing of
product page detail

Recap of Best Practices
- Conclusions -

General Best Practices
•Benefits •Think about consumer needs (and
hurdles) first, then about technology

•Think about multi-channel objectives,
•Ease of usage
don’t try to be exhaustive

•Insist on the e-channel advantages:
•Synergies empower your customer

•Non-stop : track – measure –
•Activation benchmark

•Keep the off line communication style
•Constant improvement (consistency), and tag our URL on all your
points of contacts

Future?
3 filter questions about technology ?

• Useful ?

• Usable ?

• Used ?

Master Class Marketing | 101

Thanks for Listening … (Let’s Talk ;-)

+ 32 / 496 26 06 88
Messenger: hugues@live
Mail: hugues.rey@mediabrands.be
Blog: www.rey.be
Twitter: huguesrey
Skype: Yugsxiii
Second Life: Yugs Bournemouth
Linkedin: http://www.linkedin.com/in/huguesrey

Hugues Rey Digital Channel Management 2009 Solvay

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