Future Online Strategies and Technologies: Creating value, improving communications and driving online business in the verticals

• Increased access to and use of the Internet is driving the growth of online channels, with the population of Internet users expected to reach 1.35 billion in 2007.
• There is an increasing shift towards utilizing online channels to facilitate customer service. The low cost and immediate qualities that such channels offer can drive value both for companies, enabling them to offer superior service for the customer.
• Web content management products can be used to deploy highly effective self-service initiatives for business partners, customers, and employees, using personalization to maintain an individual relationship.
• Almost 54 per cent of enterprises are currently using a web content management system, with a further 39 per cent considering investing in a system in 6 months’ to 2 years’ time.
• Blogging and the mobile communications channel can both have a significant impact on marketing strategies. However, both areas represent buzzwords - as with the Internet in the late 1990s, many companies feel they must have a presence without having clearly thought out the business benefits.

• Discover how to create long-term customer relationships and build loyalty, using this report’s analysis and advice on creating value and building long-term online customer relationships and loyalty through online channels.
• Comprehend the impact that an effective online strategy - as part of a multi-channel approach - can have on business performance, using this new report’s online technology vendor analysis.
• Gain insight into the online technologies of tomorrow and how to use them effectively through an overview of current and future online technologies, including web content management, blogging and the mobile channel, provided by this report.
• Learn from the experiences of your competitors by examining the case studies containing insights and lessons across a number of sectors and online functions - such as security, combating online competition and improving customer interaction using a multi-channel approach - included in this new report.

• How can online strategies help business performance?
• What are the online experiences of other organizations?
• Which web content management vendor offers the best solution?
• How effective is online marketing?
• What do customers expect in terms of online customer service and what strategies should be implemented to effectively build online customer relationships?
• How can web content management systems be used to feed CRM databases?
• What online technologies should organizations be using?
• Is blogging a boon or liability?

Executive Summary

The future of online

Online strategies: Building customer relationships

Online strategies: Creating value and building loyalty

Online technologies: Content management

Online technologies: Blogging and mobile

Lessons from industry: eBanking and online security

Lessons from industry: UK eRetail and online competition

Lessons from industry: eHealthcare and customer interaction

Lessons from industry: eGovernment and cutting costs

Chapter 1 The future of online

Summary

Introduction

Overview

Increased access to and use of the Internet is driving the use of online channels

Internet usage is increasing across the globe

Understand the impact of online channels on your organization

Conclusions

Chapter 2 Online strategies: Building customer relationships

Summary

Building online customer relationships

Websites as billboards are a first step towards consumer interaction

It is tempting, but generally inappropriate, to follow a traditional media strategy

The best online strategies add interactivity to strengthen the core brand message

Online communities shape consumers’ attitudes and purchasing behavior

The frequency of using online forums and reviews is increasing

Viral marketing efforts allow brands to reach consumers

Conclusions

Chapter 3 Online strategies: Creating value
and building loyalty

Summary

Creating value and loyalty through online channels

Online Customer Service (OCS) solutions necessitate investment hardware, software and employees

Technological competency and access can limit the impact of OCS

Complexities exist between the online and offline experience

Online customer service solutions present business opportunities
irrespective of size

The OCS technology facilitates cross-selling and customer
information opportunities

Ultimately, online customer service needs to help build custom satisfaction and loyalty

Fast, reliable and customized levels of service are a key
differentiator

Appropriate rewards, discounts and communication can build the relationship between consumer and supplier

Conclusions

Chapter 4 Online technologies: Content
management

Summary

Introduction

Administering multiple websites

Reuse of content

Use of web content management

Extent to which enterprises currently have or use content
management solutions

Content management sales by vertical

Vendor positioning

Market leaders: Technology

Market leaders: User sentiment

Market leaders: Impact

Conclusions

Chapter 5 Online technologies: Blogging
and mobile

Summary

Introduction

Blogging as a corporate communication channel

Corporate blogs can be used as a PR tool, but are susceptible to bad press

The mobile communications channel

SMS marketing requires consumer trust

Mobile/PDA/wireless banking is likely to emerge as an important channel in the near future

Conclusions

Chapter 6 Lessons from industry: eBanking
and online security

Summary

eBanking overview

The online channel has opened up competition

Security

Online banking security remains a key priority

The cost of online fraud

Cross-channel fraud detection and customer service

Technology solutions

Point of access

Multifactor authentication

Tokens

Mobile phones

IP address

Smart bank card

Biometrics

Factors of authentication

Reverse authentication

Analytics are key to a robust security solution

Behavioral patterns

Risk rules

Sharing fraud data

Conclusions

Chapter 7 Lessons from industry: UK eRetail
and online competition

Summary

Methodology

eRetail overview

The changing e-retail landscape

Growth of price comparison websites

Traditional retailers boost online presence

Impact of Technology

Shopper Population

Market sizing

Conclusions

Fulfilment - the greatest hurdle

Chapter 8 Lessons from industry:
eHealthcare and customer
interaction

Summary

eHealthcare overview

Healthcare is mission-driven rather than profit-driven

Healthcare needs to cater to multiple stakeholder groups

Healthcare operates in a highly regulated environment

Accessing health information online is becoming increasingly
mainstream

The Internet is a tool that consumers can leverage to take a more
active role in managing their health

The Internet is evolving into an interactive tool for managing
healthcare

Online communities facilitate peer-to-peer and consumer-tohealthcare
professional interactions

Online channels can be used to facilitate consumers’ interactions
with their physicians

Consumers are interested to use online tools to manage and monitor
health conditions

Conclusions

Chapter 9 Lessons from industry:
eGovernment and cutting costs

Summary

eGovernment overview

States and provinces invest in eGovernment to reduce costs

Innovative agencies at all levels are progressing through the eGovernment evolution

eGovernment services speed constituent transactions but rarely enable participation

Few organizations have reached the third phase of the eGovernment
evolution

eGovernment spending

Conclusions

Recognize that eGovernment needs vary across levels of government

Stress revenue opportunities but acknowledge that revenues
themselves are not the goal

Target services that will bring more bang for the buck

Index

List of Figures

Figure 2.1: The 'virtual billboard' model persists in developing countries

Figure 2.2: The static 'billboard' model does have some benefits, especially for small niche
businesses

Figure 2.3: A sizeable proportion of consumers use online forums for product and service
information

Figure 3.4: Consumers are more impatient when using technology

Figure 3.5: The components of online customer satisfaction

Figure 3.6: Improvement and investment in complaint management and customer communications
are necessary to increase loyalty and retention

Figure 4.7: Extent to which enterprises currently have or use content management solutions

Figure 4.8: Enterprises that are considering investment in content management solutions in 6 months to 2 years time

Figure 4.9: Market leaders analysis: Technology

Figure 4.10: Market leaders analysis: User sentiment

Figure 4.11: Market leaders analysis: Impact

Figure 5.12: The Tampax Compak website targets teen girls by providing an interactive ringtone
generator

Figure 6.13: Factors of authentication

Figure 7.14: Key online shopping facts 2005

Figure 7.15: E-retail market drivers 2006

Figure 7.16: Impact of technology on market growth 2004-2010

Figure 7.17: Percentage of adult population shopping online 2002-2010

Figure 7.18: Mutual reliance of online and physical channels

Figure 7.19: Fulfilment - greatest hurdle in developing an effective online operation

Figure 8.20: Consumers increasingly turn to online sources for health-related information

Figure 8.21: Use of online forums and communities is beginning to pervade healthcare

Figure 8.22: Consumers would like to use technology to facilitate the interaction with their
physicians

Figure 8.23: Consumers show interest in using disease management and compliance tools

Figure 9.24: Constituent satisfaction tops agencies' goals for eGovernment

Figure 9.25: Publishing static information is the most commonly used eGovernment function

Figure 9.26: Total US state & local eGovernment spending by level of government, 2006-2011

Figure 9.27: Total European state & local eGovernment spending by country, 2006-2011

List of Tables

Table 4.1: Content management software sales by vertical ($m)

Table 7.2: UK online spending by sector 2000-2010 (£m)