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Government Multichannel Marketing:

        How to seduce citizens to the
              web channels?

Dr. Marije Teerling        Willem Pieterson
Telematica Instituut       University of Twente
Marije.Teerling@telin.nl   W.J.Pieterson@utwente.nl


           www.kanaleninbalans.nl
Channels in Balance | Research project




    • Government Multichannel management
    • Partners: national government agencies, ministries, local
         government, universities
    • Basic principle:
           Citizens’ are able to choose their preferred channel
    • Key topics
           – Channel synchronization: how to realize consistent
              information for customers across channels and services
           – Channel marketing: how to entice customers into using the
              most cost efficient channel given their problem (usually the
              electronic channel)

                                            HICSS – 42
www.kanaleninbalans.nl                   January 5 – 8, 2009
Multichannel Marketing| Trends & Developments




    • ’90  introduction new (digital) service channels
    • Digital channels  efficiency, lower costs
    • Multichannel management (front desk, telephone, website, post, e-
      mail, sms, etc.)


    • Citizens still mainly use the traditional channels!

                Country Switzerland   Canada      Australia   The
           Channel                                               Netherlands
           Front Desk     55%         48%         46%         33%
           Phone          54%         55%         28%         28%
           Internet       24%         25%         13%         24%
           Post           14%         30%         19%         13%
           (and/or Fax)

                                          HICSS – 42
www.kanaleninbalans.nl                 January 5 – 8, 2009
Multichannel Marketing| Background | Instruments
                                                                             Transfer of information;
                                                C                              e.g. mass media, pr,
                                           (Communication)                            training.
                                                                                    (promotion)
    Instruments are rarely
       used in isolation.
                                                                              Product; e.g. quality,
                                                                                  assurance)
                                           CLE             CEL


     Laws & regulations;
         e.g. taxes                                                          Economic stimuli; e.g.
           Place                   LCE                                 ECL     discounts, grants.
                                                 SERVICE                            (price)


                                         LEC                ELC


                            L                                                     E
                         (Legal)                                              (Economic)


   Which instruments can be empirically distinguished?
   How do citizens perceive the instruments?
   Are the instrument associated in their minds?
                                                    HICSS – 42
www.kanaleninbalans.nl                           January 5 – 8, 2009
Multichannel Marketing| Background | Citizen characteristics & requirements




    Citizen characteristics
    • Differences in multichannel behavior (e.g., Burke, 2002;
        Balasubramanian et al., 2005)

         How do citizen characteristics influence the perceptions of the
          instruments?

    Requirements for multichannel behavior
    • Access to the internet
    • Experience with the internet (e.g., Montoya-Weiss et al., 2003)
    • Awareness and knowledge of the e-gov services (e.g., van Dijk et
      al., 2006)

         What is the influence of the requirements on the perceptions of the
          instruments?
                                           HICSS – 42
www.kanaleninbalans.nl                  January 5 – 8, 2009
Multichannel Marketing| Background | Citizen multichannel behavior




                                   Citizen’s decision            Citizen’s broad
                                   to use a medium                 patterns of
                                      in a specific              medium usage
                                        situation                   over time
         Channel
         Marketing

                         Citizen Multi-Channel Behavior
                                                                                How does citizen
                                                                               multichannel behavior
           Channel                Channel            Channel Use
           Choice                  Usage              Evaluation               vary the perceptions
                                                                                  of the channel
                                               Experience
                                                                                     marketing
                                                                                   instruments?

          Influenced by
        perceived channel
         characteristics


                                                       HICSS – 42
www.kanaleninbalans.nl                              January 5 – 8, 2009
Multichannel Marketing| Empirical Setting | Method




    •     Medium sized Dutch municipality (136.573 inhabitants)
           – Based on size, population and services, the municipality is
              average sized.
    •     Local government service channels:
           – Front desk
           – Telephone
           – Website
           – Post
    •     Two-stage methodology
           1. Exploratory depth interviews with citizens (n=15)
               – Main topics: use of front desk services, appointments
                  made for services, use of e-services, e-mail contact,
                  opinions on the various instruments.
               – Scales developed based on the interviews
           2. Survey among Dutch citizens
                                           HICSS – 42
www.kanaleninbalans.nl                  January 5 – 8, 2009
Multichannel Marketing| Empirical Setting | Data                      > 65   < 25
                                                                             2%
                                                                      10%




                                                                                      25 - 45

    •     Survey conducted early 2008 through:                                         42%


           – Front desk
                                                           45 - 65
           – Online channel                                 46%

    •     Response & Sample size
           – Front desk sample = 127 citizens                      Age distribution

           – Online panel sample = 1,802 citizens
               • 3,068 e-mails sent out. Response rate = 58.7%
    •     Demographics indicate a representative sample for the
          municipality.
           – 46% women, 54% men
           – Average age = 48 years
           – 74.8% has at least a high school diploma
           – Majority of respondents have extensive or very extensive
              Internet experience (72%).
    •     Total sample is representative for the Dutch population
                                              HICSS – 42
www.kanaleninbalans.nl                     January 5 – 8, 2009
Multichannel Marketing| Results | Which instruments can be distinguished?




    •     In total 20 items related to the various instruments were formulated
          based on the qualitative interviews.
    •     Measured on a five-point Likert scale
    •     Exploratory factor and reliability analyses resulted in 5 underlying
          constructs and the final selection of 16 items.

        Abr.         Name                                       Nr. of items   Cronbach’s α
        LED          Legal / Exclusive Distribution                   3            0.72
        CWS          Communication Web Service                        4            0.80
        PTC          Price Traditional Channels                       3            0.69
        PWS          Price Web Services                               3            0.69
        WSO          Web Service Offering                             3            0.70



                                                  HICSS – 42
www.kanaleninbalans.nl                         January 5 – 8, 2009
Multichannel Marketing| Results | How do citizens perceive the instruments?




               Average perceptions of the instruments

     Construct                            N         Means            St. dev    •   Negative about
                                                                                    LED & PTC
     LED                             1942             1.72*              0.67
                                                                                •   Positive about
     CWS                             1941             3.79*              0.64       PWS, WSO,
                                                                                    CWS
     PTC                             1942             2.15*              0.81
                                                                                •   Most positive
     PWS                             1938             3.45*              0.89       about CWS

     WSO                             1938             3.73*              0.69
           *Means shown differ significantly from the neutral point (3) of
           the scale at the 0.05 level.




                                                            HICSS – 42
www.kanaleninbalans.nl                                   January 5 – 8, 2009
Multichannel Marketing | Results | Are the instruments associated?



                               Communication
                                web service                            •   Only 1 not
                                  (CWS)
                                                                           significant
                                                                           correlation:
                                                                           LED*WSO
                                                            .39        •   Price traditional
             .05                 .62
                                                                           channels (PTC)
                                                                           strongest
                                     Web                                   associated with
                                   Service                                 legal / exclusive
                         .03   Offering (WSO)
                                                    .34                    distribution (LED)
                                                                           and price web
    Legal /                                                        Price   services (PWS)
  Distribution                                                  Web services
     (LED)                                                        (PWS)
                                        .26

                                                   HICSS – 42
www.kanaleninbalans.nl                          January 5 – 8, 2009
Multichannel Marketing | Results | Influence of citizen characteristics


                        Service offering online


  3.80                                                                 •     One-way Anova for age:
   3.75
                                                                              – WSO (F(4,1924)=3.05; see
                                                                                 figure)
   3.70
                                                                       •     T-test for gender
   3.65
                                                                                      PTC    WSO     t
   3.60                                                                          M    2.21   3.78   3.44

   3.55
                                                                                 F    2.08   3.67   3.3

    3.50                                                               •     One-way Anova for Education:
    3.45                                                                     – Higher educated citizens
           Younger
                     36 - 45
                                                                                more positive about WSO
           than 35             46 - 55
            years
                      years
                                years
                                          56 - 65
                                           years
                                                    66 years           •     One-way Anova household size
                                                    and older
                                                                             – Bigger households favor
             One-way Anova: Age * WSO
                                                                                economical instruments
                                                                   HICSS – 42
www.kanaleninbalans.nl                                          January 5 – 8, 2009
Multichannel Marketing| Results | Influence of the requirements

                                                Internet Access
 4


3,8


3,6


3,4


3,2
                                                                                                 CWS
                                                                                                 PTC
 3
                                                                                                 PWS
                                                                                                 WSO
2,8


2,6


2,4


2,2


 2
                 One accesspoint or no access                        Access at multiple points

                                                      HICSS – 42
www.kanaleninbalans.nl                             January 5 – 8, 2009
Multichannel Marketing| Results | Influence of the requirements

                                   Internet Experience
4,0




3,8




                                                                            CWS
3,6
                                                                            PWS
                                                                            WSO



3,4




3,2




3,0
               Not experienced        Neutral                 Experienced




                                          HICSS – 42
www.kanaleninbalans.nl                 January 5 – 8, 2009
Multichannel Marketing| Results | Influence of the requirements
                                  Knowledge of online services
3,90

  3,85
3,70
                                                                            CWS
3,50

  3,80
3,30


3,10
                                                                            WSO
  3,75
2,90


2,70

  3,70
2,50


2,30

  3,65
2,10


1,90

  3,60
1,70

                Low knowledge               Neutral                High knowledge
1,50
                  Low knowledge                Neutral                   High knowledge

                                  LED    CWS HICSS – 42
                                                 PTC       PWS   WSO
www.kanaleninbalans.nl                    January 5 – 8, 2009
Multichannel Marketing| Results | Citizen multichannel behavior




                         One-way Anova Channel Choice variables
   Last channel               LED        CWS          PTC        PWS           WSO     Preferred channel
   Website                             3.9 3.9 2.2 2.3 3.6 3.6                                      Website
   E-mail                        1.8                                 3.9                              E-mail
   Post                                        3.5 2 1.9 3.2 3.1 3.9 3.5                                Post
   Front desk                    1.6                             3.6                              Front desk
   Telephone                           3.7                                                         Telephone
          LED significant at 90% reliability for last channel, LED not significant for preferred channel.


               One-way Anova Channel Usage
   Most often used           LED        CWS        PTC       PWS        WSO
   Website
   E-mail                                           2
   Post                                  3.9       2.3        3.6
   Front desk
   Telephone                             3.7                  3.1
         LED and WSO are not significant for most often used channel

                                                            HICSS – 42
www.kanaleninbalans.nl                                   January 5 – 8, 2009
Multichannel Marketing| Results | Citizen multichannel behavior




   Channel choice – channel characteristic combination                                 •   Citizens that
     Characteristic                    LED CWS PTC PWS WSO                                 associate the
     Personal situation                 E   W W W       E                                  website with
     Language variation                 W   E   W   E   E                                  characteristics
     Fast answer                        E   W W W       W                                  favor CWS,
     Multiple cues                      T   W                                              PTC, PWS
     Ease of use                        E   W W W       E                                  and WSO
     Achieve goal                       E   E   W W     W
     Fast in contact                        W W W       W
     Most service                       E   W W W       W                              •   Citizens that
     Cheapest                               W W W       W                                  associate
     Best experiences                   E   W W W       W                                  email with
      E = E-mail, W = website, T = Telephone,                                              characteristics
      Blank cell indicates no significant differences in MCM instrument perceptions.
                                                                                           favor LED


                                                           HICSS – 42
www.kanaleninbalans.nl                                  January 5 – 8, 2009
Multichannel Marketing| Conclusions




   • Four main multichannel marketing instruments
          – Legal or distribution, communication, price (traditional channel or
            digital channel), web service offering
   • Citizens favor the ‘softer’ instruments
          – CWS, PWS, WSO
   • Promote e-accessibility
          – The better citizens do on the requirements, the more they favor the
            use of instruments to promote e-services.
   • The softer instruments may enhance each other!
          – The softer instruments are strongly correlated (CWS, PWS, WSO)
   • Target specific segments
          – WSO  younger, higher educated and/or male citizens
          – PTC and PWS  larger households
          – Depending on citizens’ multichannel behavior: perceptiveness for the
            instruments may vary


                                                 HICSS – 42
www.kanaleninbalans.nl                        January 5 – 8, 2009
Multichannel Marketing| Future research




   • Determining the effectiveness of specific instruments /
     combinations of instruments
          – In terms of efficiency and customer satisfaction
   • Short term versus long term effects of instruments
   • Requirements for the instruments to be used
          – Accessibility of citizens; quality of web offering


   • Further research within the project Kanalen in Balans
      – Qualitative study for the Dutch Ministry of Internal Affairs
      – New smart forms of communication @ SVB
      – Training & self-service technology @ IBG
      – From channel choice research to defining a multichannel
        marketing plan @ 3 Dutch municipalities
      – Improving the web channel (chat function) @ UWV

                                                    HICSS – 42
www.kanaleninbalans.nl                           January 5 – 8, 2009
Q
       HICSS – 42
    January 5 – 8, 2009

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Government Multichannel Marketing: How to seduce citizens to the web channels?

  • 1. Government Multichannel Marketing: How to seduce citizens to the web channels? Dr. Marije Teerling Willem Pieterson Telematica Instituut University of Twente Marije.Teerling@telin.nl W.J.Pieterson@utwente.nl www.kanaleninbalans.nl
  • 2. Channels in Balance | Research project • Government Multichannel management • Partners: national government agencies, ministries, local government, universities • Basic principle: Citizens’ are able to choose their preferred channel • Key topics – Channel synchronization: how to realize consistent information for customers across channels and services – Channel marketing: how to entice customers into using the most cost efficient channel given their problem (usually the electronic channel) HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 3. Multichannel Marketing| Trends & Developments • ’90  introduction new (digital) service channels • Digital channels  efficiency, lower costs • Multichannel management (front desk, telephone, website, post, e- mail, sms, etc.) • Citizens still mainly use the traditional channels! Country Switzerland Canada Australia The Channel Netherlands Front Desk 55% 48% 46% 33% Phone 54% 55% 28% 28% Internet 24% 25% 13% 24% Post 14% 30% 19% 13% (and/or Fax) HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 4. Multichannel Marketing| Background | Instruments Transfer of information; C e.g. mass media, pr, (Communication) training. (promotion) Instruments are rarely used in isolation. Product; e.g. quality, assurance) CLE CEL Laws & regulations; e.g. taxes Economic stimuli; e.g. Place LCE ECL discounts, grants. SERVICE (price) LEC ELC L E (Legal) (Economic) Which instruments can be empirically distinguished? How do citizens perceive the instruments? Are the instrument associated in their minds? HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 5. Multichannel Marketing| Background | Citizen characteristics & requirements Citizen characteristics • Differences in multichannel behavior (e.g., Burke, 2002; Balasubramanian et al., 2005)  How do citizen characteristics influence the perceptions of the instruments? Requirements for multichannel behavior • Access to the internet • Experience with the internet (e.g., Montoya-Weiss et al., 2003) • Awareness and knowledge of the e-gov services (e.g., van Dijk et al., 2006)  What is the influence of the requirements on the perceptions of the instruments? HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 6. Multichannel Marketing| Background | Citizen multichannel behavior Citizen’s decision Citizen’s broad to use a medium patterns of in a specific medium usage situation over time Channel Marketing Citizen Multi-Channel Behavior How does citizen multichannel behavior Channel Channel Channel Use Choice Usage Evaluation vary the perceptions of the channel Experience marketing instruments? Influenced by perceived channel characteristics HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 7. Multichannel Marketing| Empirical Setting | Method • Medium sized Dutch municipality (136.573 inhabitants) – Based on size, population and services, the municipality is average sized. • Local government service channels: – Front desk – Telephone – Website – Post • Two-stage methodology 1. Exploratory depth interviews with citizens (n=15) – Main topics: use of front desk services, appointments made for services, use of e-services, e-mail contact, opinions on the various instruments. – Scales developed based on the interviews 2. Survey among Dutch citizens HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 8. Multichannel Marketing| Empirical Setting | Data > 65 < 25 2% 10% 25 - 45 • Survey conducted early 2008 through: 42% – Front desk 45 - 65 – Online channel 46% • Response & Sample size – Front desk sample = 127 citizens Age distribution – Online panel sample = 1,802 citizens • 3,068 e-mails sent out. Response rate = 58.7% • Demographics indicate a representative sample for the municipality. – 46% women, 54% men – Average age = 48 years – 74.8% has at least a high school diploma – Majority of respondents have extensive or very extensive Internet experience (72%). • Total sample is representative for the Dutch population HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 9. Multichannel Marketing| Results | Which instruments can be distinguished? • In total 20 items related to the various instruments were formulated based on the qualitative interviews. • Measured on a five-point Likert scale • Exploratory factor and reliability analyses resulted in 5 underlying constructs and the final selection of 16 items. Abr. Name Nr. of items Cronbach’s α LED Legal / Exclusive Distribution 3 0.72 CWS Communication Web Service 4 0.80 PTC Price Traditional Channels 3 0.69 PWS Price Web Services 3 0.69 WSO Web Service Offering 3 0.70 HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 10. Multichannel Marketing| Results | How do citizens perceive the instruments? Average perceptions of the instruments Construct N Means St. dev • Negative about LED & PTC LED 1942 1.72* 0.67 • Positive about CWS 1941 3.79* 0.64 PWS, WSO, CWS PTC 1942 2.15* 0.81 • Most positive PWS 1938 3.45* 0.89 about CWS WSO 1938 3.73* 0.69 *Means shown differ significantly from the neutral point (3) of the scale at the 0.05 level. HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 11. Multichannel Marketing | Results | Are the instruments associated? Communication web service • Only 1 not (CWS) significant correlation: LED*WSO .39 • Price traditional .05 .62 channels (PTC) strongest Web associated with Service legal / exclusive .03 Offering (WSO) .34 distribution (LED) and price web Legal / Price services (PWS) Distribution Web services (LED) (PWS) .26 HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 12. Multichannel Marketing | Results | Influence of citizen characteristics Service offering online 3.80 • One-way Anova for age: 3.75 – WSO (F(4,1924)=3.05; see figure) 3.70 • T-test for gender 3.65 PTC WSO t 3.60 M 2.21 3.78 3.44 3.55 F 2.08 3.67 3.3 3.50 • One-way Anova for Education: 3.45 – Higher educated citizens Younger 36 - 45 more positive about WSO than 35 46 - 55 years years years 56 - 65 years 66 years • One-way Anova household size and older – Bigger households favor One-way Anova: Age * WSO economical instruments HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 13. Multichannel Marketing| Results | Influence of the requirements Internet Access 4 3,8 3,6 3,4 3,2 CWS PTC 3 PWS WSO 2,8 2,6 2,4 2,2 2 One accesspoint or no access Access at multiple points HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 14. Multichannel Marketing| Results | Influence of the requirements Internet Experience 4,0 3,8 CWS 3,6 PWS WSO 3,4 3,2 3,0 Not experienced Neutral Experienced HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 15. Multichannel Marketing| Results | Influence of the requirements Knowledge of online services 3,90 3,85 3,70 CWS 3,50 3,80 3,30 3,10 WSO 3,75 2,90 2,70 3,70 2,50 2,30 3,65 2,10 1,90 3,60 1,70 Low knowledge Neutral High knowledge 1,50 Low knowledge Neutral High knowledge LED CWS HICSS – 42 PTC PWS WSO www.kanaleninbalans.nl January 5 – 8, 2009
  • 16. Multichannel Marketing| Results | Citizen multichannel behavior One-way Anova Channel Choice variables Last channel LED CWS PTC PWS WSO Preferred channel Website 3.9 3.9 2.2 2.3 3.6 3.6 Website E-mail 1.8 3.9 E-mail Post 3.5 2 1.9 3.2 3.1 3.9 3.5 Post Front desk 1.6 3.6 Front desk Telephone 3.7 Telephone LED significant at 90% reliability for last channel, LED not significant for preferred channel. One-way Anova Channel Usage Most often used LED CWS PTC PWS WSO Website E-mail 2 Post 3.9 2.3 3.6 Front desk Telephone 3.7 3.1 LED and WSO are not significant for most often used channel HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 17. Multichannel Marketing| Results | Citizen multichannel behavior Channel choice – channel characteristic combination • Citizens that Characteristic LED CWS PTC PWS WSO associate the Personal situation E W W W E website with Language variation W E W E E characteristics Fast answer E W W W W favor CWS, Multiple cues T W PTC, PWS Ease of use E W W W E and WSO Achieve goal E E W W W Fast in contact W W W W Most service E W W W W • Citizens that Cheapest W W W W associate Best experiences E W W W W email with E = E-mail, W = website, T = Telephone, characteristics Blank cell indicates no significant differences in MCM instrument perceptions. favor LED HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 18. Multichannel Marketing| Conclusions • Four main multichannel marketing instruments – Legal or distribution, communication, price (traditional channel or digital channel), web service offering • Citizens favor the ‘softer’ instruments – CWS, PWS, WSO • Promote e-accessibility – The better citizens do on the requirements, the more they favor the use of instruments to promote e-services. • The softer instruments may enhance each other! – The softer instruments are strongly correlated (CWS, PWS, WSO) • Target specific segments – WSO  younger, higher educated and/or male citizens – PTC and PWS  larger households – Depending on citizens’ multichannel behavior: perceptiveness for the instruments may vary HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 19. Multichannel Marketing| Future research • Determining the effectiveness of specific instruments / combinations of instruments – In terms of efficiency and customer satisfaction • Short term versus long term effects of instruments • Requirements for the instruments to be used – Accessibility of citizens; quality of web offering • Further research within the project Kanalen in Balans – Qualitative study for the Dutch Ministry of Internal Affairs – New smart forms of communication @ SVB – Training & self-service technology @ IBG – From channel choice research to defining a multichannel marketing plan @ 3 Dutch municipalities – Improving the web channel (chat function) @ UWV HICSS – 42 www.kanaleninbalans.nl January 5 – 8, 2009
  • 20. Q HICSS – 42 January 5 – 8, 2009