Why Are M-Coupons Better Than Traditional Paper Coupons - Case Study Example

Why Are M-Coupons Better Than Traditional Paper Coupons? M-coupon system is an electronic ticket system, which is delivered by mobile phone and can be exchanged for discount or refund while purchasing a product or service. These coupons are used as sales promotion technique through various entertainment appeals and services. These coupons are sent through SMS, MMS, Bluetooth and other mobile media. The consumer can redeem coupon at store or through internet. The mobile coupons are better than the traditional paper coupon in such a way because the coupons are reliable means of encouraging bulk purchases. Whether the product or service is traditional or not the coupon promotes experiment among new target customers. It can promote sales. Once the product is sold through proper distribution channel, the coupon ensures that they sell through to the end user. Through mobile coupon, companies can make a database of customers, because to ‘receive their check’ the customers must provide their number and address. These databases help the company to track purchasers (Mobile Market Association, 2007). There are other benefits of using mobile coupon which include: Customers always keep mobile with them, so they can never leave mobile coupon at home Customer can use mobile coupon system whenever they prefer to buy or eat anything from shop. All they have to do is to send the coupons before lunch time Customer can forward these coupons to their friends and relatives and they will not have to pay any extra charges for forwarding coupons Young people and teenagers prefer mobile coupon system to traditional printed coupon system Uses of mobile coupon can save trees because it doesn’t need any paper unlike the tradition coupon system (Advanced Mobile Solutions, 2010). Question 2 What Are The Risks Involved With Mobile Marketing And M-Coupons? Many customers are disturbed by receiving any type of marketing messages into mobile because mobile is a personal thing (Marketing Minefield, 2007). Mobile is good for marketing, but there are many mobiles which support only 160 characters per SMS and that is not enough to display all information about any special offer (Marketing Minefield, 2007). Privacy is a big issue in mobile phone. At times, customers provide instruction to mobile subscriber to opt out any unnecessary messages. Because of troubles related with opt-in SMS lists, this marketing technique has its own restrictions towards the customers (Marketing Minefield, 2007). Standardization is also a drawback of mobile coupon system, because each phone has their operating system, different screen size and different browsers. Marketers have to optimize their phone to the customers’ phone for delivering any kind of advertisements or WebPages (Business Link, n.d.). Customers are cautious nowadays to respond to SMS messages because of increase in fraudulent and spam SMSs. They respond negatively to unwanted messages (Business Link, n.d.). Question 3 What Are The Privacy Issues Involved With Mobile Marketing And M-Coupons? In mobile marketing system, securing privacy is a ‘commercially valuable benefit’ which protect customer’s privacy in online environment. Customers always value their privacy. They are always cautious whether a wireless site is tracking and receiving any private information about them. It is common that every company needs demographic and behavioral information about their customers for business purposes, but customer feel that no company has the right to sell their information to other organization. The ultimate solution to this conflict is to make a partnership with customers where company can control the ownership of customer’s demographic and behavioral information and agree how and when this information should be used. In the year 2003, the UK implemented ‘EC Directive’ law under ‘Privacy and Electronic Communication Regulation 2003’ which describes the regulations about: (Salter & Michael, 2006). Unwanted business communications or spamming: The regulation strictly prohibits delivering spam SMSs unless the customer opts to receive them Cookies: The regulation strictly prohibits the use of cookie as tracking device unless the customer knows about the purpose of those cookies and permits the access of information about the customer (Salter & Michael, 2006) Traffic data & publicly accessible directories: All SMS providers must make sure that they should process any personal data or mobile phone number compliant with ‘Data Regulation Act 1998’ and ‘Telecommunication Regulations 1999’ (Salter & Michael, 2006). Teenage children also use mobile phones. Every firm must be cautious while marketing with them. In the year 1998, the US implemented ‘Children Online Privacy Protection Act’ which provided rules and regulations about collecting the personal information about them and gaining parental permission. If any firm ignores these laws and regulation then it will cause fine and criminal liability towards those firms. It can further put a bad reputation against the firm (Arnold & Becker, 2010). Question 4 How Can The Cafe Benefit From Collecting And Tracking Response Rates Of M-Coupons By Customers? Coupons are established as a promotional tool for selling products. The response of mobile coupon is positive because it creates awareness, builds customer retention and regenerates sales. Coupon system is highly accepted among customers (Wehmeyer, 2005). Through mobile coupon system, a cafe can detect customer’s buying behavior. It shows who the regular customer is and what they usually buy. Mobile coupon system records the frequency of customers that how often and how fast they respond to any advertisement or sales promotion or whether the customers are responding or not. It shows immediate results to marketers that how well the customers are purchasing the products. By this information any cafe will have clear idea about what customers prefer the most. The café can promote discounts on any product or promote different seasonal specials by tracking the customer information (Student of Fortune, 2011). Question 5 How Can The Cafe Benefit From Tracking If An M-Coupon Is Forwarded To Another Cell Phone? Mobile coupon is beneficial for café no matter who is receiving the coupon or who is forwarding them to other customers. In case of forwarding the coupon it will benefit the café by increasing the customer base. A customer who is forwarding the coupon to his friends or relatives allows the café to establish connection with new customer. It will add a new profile in the customer database and the Café can track their information. This system will inform the café about the communities of customers, who make regular purchase from the café. By proper survey about the communities the owner can know what they prefer about the café. This will reveal the strength of the café and will help to develop and grow further. By this m–coupon forward system, café can meet new customers and communities to make them loyal. Furthermore, the café can reward the customer who forwarded his coupon and thus refer new customer to the café. If the coupons are connected with sales record, then the café can also track other things such as what other products the customers are purchasing besides coupons. Later, all these records about customers purchasing pattern can be transformed into information which will help the café to take any business decision and strategy in future (Student of Fortune, 2011). 2nd Set Question 1 How Can Your Virtual World Help Business In The Real World? Organizations which use virtual software such as Second Life (SL) can develop working models of new and existing product. Through SL, a company can make a conference in virtual world where company will organize event with prominent speaker. Any agent or customer who attends that event can get a brief idea about company’s new product and other schemes (Webber, 2008). SL can be used to conduct training sessions in various departments of organization. In certain professional associations, it is also used as occupational degree. SL training is used where imitating real life situation is expensive or dangerous as in case of doctors, engineers and training of border guards (Webber, 2008). SL engages cross selling between real and virtual world products. SL can be used as advertising channel for connecting with a particular demographic segment. If a product failed in real world the company can re-launch the product in virtual world and make modification according to customer choice. It is cheaper to create product in SL version and receive feedback about the product before making a prototype of it in real world (Webber, 2008). Since the entry cost is cheap, large number of people around the world joins SL. There are certain areas in SL which are dominated by particular language or regional group of people. By being a part of SL, people can learn about other markets by observing, interacting and setting up virtual store in SL (Webber, 2008). Question 2 How Will Customer Relationships Be Different In A Virtual World? Virtual world creates a more immersive experience for customers. Designing a business in SL is important in virtual world because everything goes there design wise. People make their business attractive rather than in real world for attracting customers towards their business. In SL people present a medium for motivating real world interaction. It has similar benefit as video conferencing. Through SL any company can gather many people around the world for real time communication. SL provides minimum information about visitors. It only provides a place where people can visit. For example, a game developer company can allow the visitors to make a tour through reconstruction of a level in a game (Ideonexus, 2008). Question 3 What Is Your Strategy For Managing Customer Relationships In This New Virtual Environment? Virtual world are important channel for reaching a wide customer base. Virtual world allows for a cost effective way of gaining customer. Through virtual world organization can reach to a customer and form synergies among virtual and real channel. Company uses virtual relationship management programme to design products and services with collaboration of customers. Virtual world enhances the brand visibility and facilitates business to a new customer base. Instead of traditional strategies, organization should implement innovative strategy towards customer in virtual world. For developing any prototype, company can reach the customers for ideas. Feedbacks about product are much richer compared to the traditional method. Company can also offer incentives in virtual world for attracting customers towards their product. For example, a service oriented organization can allow customers to experience its service and collect feedback of how the service can be developed. Virtual world allows customers to participate in making a design for product or service. The experience of being a part of the product can promote sales and make a good customer relationship (Elham & Et. Al., 2007). Question 4 How Will Supporting Second Life Customers Differ From Supporting Traditional Customers? Supporting second life customers differs from traditional customers. Unlike traditional system, the second life system provides the customers with self-service browser system for placing any order, checking the status of order, reviewing purchase records and it also provides additional information about any product and sends emails. These systems provide customers and the company freedom of place and time. Customers don’t have to contact any company at office hours, instead they can contact through email at any time; and company don’t have to make a face-to-face contact; for any type of enquiry of the customers they can respond to customers request at any place (Strickland & Chandra, 2004). On the other way, the traditional systems use client and server technology. In this system, all program and application run through one or more than one centralized server. Traditional system does not support data warehouses instead it acts as data repository. In the traditional system, customers contact to the company through retail outlet, telephone, and fax and company’s customer service i.e. call centers (Strickland & Chandra, 2004). Question 5 How Will Supporting Second Life Customers Differ From Supporting Website Customers? Website customers differ from second life customers in such a way that web site customer management system is designed around one department or single business unit and not around the entire company. On the other hand, all application of second life is designed for the entire company including every customer, supplier and partners (Strickland & Chandra, 2004) Question 6 What Customer Security Issues Might You Encounter In Second Life? There are various security issues that might be encountered in SL, which are: Risks of IT: IT risk of SL ‘deals with the applications’ which are required to download in computer system. There is no indication to identify these applications which might be a big risk for other comparable applications (CBS Interactive Limited, 2011). Identity: It is not certain that the avatar in SL world is actually the real life person or just an imposter. There is no identity control in SL, which can verify the avatar and virtual world environment. For this reason, companies should sincerely evaluate the availability of private virtual world environment and create their own virtual world under good firewall system (CBS Interactive Limited, 2011). Confidentiality: Any confidential discussion should not be done inside SL. Company can rather create their own private virtual world for sharing confidential information for better control of security related issue (CBS Interactive Limited, 2011). Company reputation: Uncontrollable virtual world can represent fraudulent environment about any company which can harm the reputation of the company’s brand. Every company must exercise extreme caution in their private virtual world (CBS Interactive Limited, 2011). Question 7 What Customer Ethical Issues Might You Encounter In Second Life? There are several ethical issues involving SL. For example, There is no tax law in SL because it is a game with virtual items. People can make cash in SL and when they cash out of the SL they convert the ‘Linden’ Dollars into USD. They are required to report their income to IRS, but there are no regulations of those capital which don’t leave the virtual world at all (Lindsay, 2005). There is no law in virtual world such as SL. If someone deceives any asset or property in virtual world there is no legal procedure to evolve (Lindsay, 2005). The CopyBot is another issue in virtual world. CopBot is a program which can copy the objects of virtual world which other people created. It is a big problem and government should take step to deal with these types of illegal program (Lindsay, 2005). Though the products or objects in SL are not real, someone might steal any virtual object, which is another person’s creation and must be punished by law (Lindsay, 2005). 3rd Set Question 1 What Are The Pros And Cons Of Using An Employee To Build You A Custom System? The main pros of making a custom system using company’s own employee is that it can make system according to user’s specification. The employee will always know what is exactly needed for making the system which satisfies the user’s need. It will cost low compared to making it from outside retail outlet. The major disadvantage of using employee to making a custom system is the loyalty of the employee. Because he will be expert in using the system; thus as long as the employee works in the organization there is no problem, but if the employee leaves the company another worker will be needed to train and use the system. Question 2 What Are The Pros And Cons Of Purchasing A COTS Time And Attendance Application And Outsourcing Custom Development? COTS time and attendance application is the software to monitor the time worked by employees. It is used for efficient processing of payroll. It can also track worker distribution, develop security as well as personnel scheduling. This system can decrease the time required to enter ‘hour worked’ records into the ‘payroll system’ (HR Guide, 2007). The pros of outsourcing system are it provides company with skill to expand business and save money. But it has limitation as well; it eradicates direct communication among company and its customers which can lead to dissatisfaction (Master, 2009). Question 3 How Will Your Older Employees Feel About The New System And What Can You Do To Ensure A Smooth Transition? Few employees can respond in favor of the change and few can respond against the change. The older employee would worry about their seniority position, pay scale, work schedule and other benefits for implementing new system. For smoother transition, the employer should inform about the change as soon as possible because if the employees don’t know about the change, it can harm to the employees as well as result in customer loss. They should be told about the benefit of new system and how it can increase the sale of the company (Bertrand, 1999). References Advanced Mobile Solutions, (2010). Mobile Coupons. Products & Services. Retrieved Online on March 11, 2011 from http://www.advancedmobile.com/products-and-services/mobile-coupon.html Bertrand, M., (1999). Acquisition Aftermath, Part II: Managing Employee Transitions. Connections Magazine. Retrieved Online on March 11, 2011 from http://www.connectionsmagazine.com/articles/0/075.html Business Link, (No Date). Generate Business From Your E-Marketing Plan. Practical advice for business. Retrieved Online on March 11, 2011 from http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1075390385&type=RESOURCES Becker, M. & Arnold, J., (2010). Mobile Marketing for Dummies. For Dummies. CBS Interactive Limited, (2011). Five Virtual World Security Worries for Business. CIO Insights. Retrieved Online on March 11, 2011 from http://www.silicon.com/management/cio-insights/2007/08/09/five-virtual-world-security-worries-for-business-39168101/ Elham, M. & Et. Al., (2007). vCRM: Virtual Customer Relationship Management. All Business. Retrieved Online on March 11, 2011 from http://www.allbusiness.com/company-activities-management/operations/8889116-1.html HR Guide, (2007). Time and Attendance. Human Resource Software. Retrieved Online on March 11, 2011 from http://www.hr-software.net/pages/211.htm Ideonexus, (2008). How Second Life Changes Customer Service. Uploads. Retrieved Online on March 11, 2011 from http://ideonexus.com/wp-content/uploads/2010/01/20081123SLCustomerServiceDiscussion.pdf Lindsay, R., (2005). Ethical and Legal Group Government, Crime and Second Life. Second Life Feasibility Study. Retrieved Online on March 11, 2011 from http://manfromporlock.wetpaint.com/page/Ethical+and+Legal+Group Mobile Market Association, (2007). Introduction to Mobile Coupons. Education. Retrieved Online on March 11, 2011 from http://www.mmaglobal.com/mobilecoupons.pdf Marketing Minefield, (2007). SMS Marketing. Unusual Marketing & Advertising Ideas. Retrieved Online on March 11, 2011 from http://www.marketingminefield.co.uk/unusual-ideas/sms-marketing.html Master, D., (2009). Outsourcing Help: Pros and Cons of Outsourcing. Free Article: Tutorial. Retrieved Online on March 11, 2011 from http://e-articles.info/e/a/title/Outsourcing-Help:-Pros-and-Cons-of-Outsourcing/ Salter, B. & Michael, A., (2006). Mobile Marketing: Achieving Competitive Advantage through Wireless Technology. Butterworth-Heinemann. Student of Fortune, (2011). Smart Homework help. Question. Retrieved Online on March 11, 2011 from http://studentoffortune.com/question/922757/1Why-are-m-coupons-better-than-traditi Strickland, T. J. & Chandra, S., (2004). Technological Differences between CRM and eCRM. University of Louisville. Retrieved Online on March 11, 2011 from http://www.iacis.org/iis/2004_iis/PDFfiles/ChandraStrickland.pdf Wehmeyer, K., (2005). Mobile Couponing – Measuring Consumers’ Acceptance and Preferences with a Limit Conjoint Approach. European Research Center for Information Systems. Retrieved Online on March 11, 2011 from http://ecenter.fov.uni-mb.si/proceedings.nsf/0/b49739ccb14ca7c9c12570140049a49e/$FILE/20Wehmeyer.pdf Webber, S., (2008). Second Life for Business: Ten Techniques. Article. Retrieved Online on March 11, 2011 from http://web.fumsi.com/go/article/use/3326 Read More