Channel Choice

Seminar Channel Choice and
Channel Management:
From Theory to Practice
March 26, 2009 University of Twente
Importance of the Topic
• A choice problem for users: ever more
channels are available, some of them new
• A choice problem for suppliers and service
providers: ever more channels available,
some of them attractive, others not
• How to manipulate and manage channel
choice: is it possible?
• Scientific problem, particularly for
communication scientists: how and under
which conditions do people choose channels?
Channel Behavior
Influencing behavior
Experience
Channel Choice
Channel Usage
Channel Evaluation
Experience
• Channel choice: the picking of the channel at a certain moment
• Channel usage: the aggregated use (long term)
Channel Strategy and Management
in Public Service Provision
Prof. Dr. Jan van Dijk
University of Twente
Topics for this Presentation
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Why a Channel Strategy is needed
Common goals for channel strategies
Parallel strategy
Replacement strategy
Supplemental strategy
Integration strategy
Integration between separate channels?
Conditions for the implementation of an
integration strategy
• Multichanneling in the organization
Why a Channel Strategy is Needed
• Differentiation of service needs and situations
in society
• The growing number of channels or media
people can choose
• Increasing networked character of these
channels (coordination required)
• Redivision of government organization
(to realize one-stop service delivery etc.)
Common Goals for Channel Strategies
• Effectiveness of service provision (reaching
the right clients with the right means)
• Efficiency (costs and gains)
• User/Citizen satisfaction with services
• Access for all
• Being innovative or ‘modern’
Four Channel Strategies
Nr
1
Name
Parallel
strategy
2
Replacement
strategy
Explanation
Channels are positioned next to each other.
Citizens are free to choose their
channels and services are available
through each channel.
Channels can replace each other.
Assumption is that channels can be
superior or inferior to each other.
Customers would prefer to use the best
channel and therefore one channel (e.g.
digital) would replace another (e.g. nondigital)
Multi-channel Strategies
(expicit relation between channels)
Nr
Name
Explanation
3
Supplemental
strategy
Channels have supplemental values; each
channel has it’s own characteristics that
makes them suitable for certain types of
services. Therefore, governments should
offer services via the best suited
channels.
4
Integration
strategy
All channels are integrated in the entire
service delivery process. This means that
all services are offered via all channels,
but that strengths and weaknesses of
channels are used in their design.
Citizens are guided to the ‘ best’
channels and channels seamlessly refer
to each other.
Parallel Strategy
• TIME: the oldest strategy;
makes a come-back in the last 5 years
• ADVANTAGES
- access for all
- effective: channels develop their own strengths
• DISADVANTAGES
- very costly and inefficient
- no innovation and no redivision of services
• RIGHT IDEA
- users and service providers have channel
preferences
• WRONG IDEA
- every channel is able to deliver all services with a
high quality
Replacement Strategy
• TIME: the 1990s: the rise and hype of the Internet
• ADVANTAGES
- stimulus for innovation
- long term: might become very efficient
• DISADVANTAGES
- no access for all (physical access, skills, usage pref.)
- short term: not efficient (investment needed; burdening
all other channels)
• RIGHT IDEA
- digital channels might improve to cover ever more
needs
• WRONG IDEA
- that old channels will disappear;
service desks will remain ‘forever’
Supplemental Strategy
• TIME: after the Internet hype; launched by the
commercial service sector
• ADVANTAGES
- might be very effective: right means for right clients
- might be very efficient (not all channels used)
• DISADVANTAGES
- access: users are forced to use particular channels on
particular occasions
- users do not always choose the ‘right’ channel
• RIGHT IDEA
- the combination of channels for their strong
characteristics
• WRONG IDEA
- that users can be forced
Integration Strategy
• TIME: the present: multi-channeling as a way for service
integration and redivision of services
• ADVANTAGES
- combines the advantages of parallel and supplemental
strategies: all services in all channels available, but users are
(re)directed
- innovative (integration) and ultimately efficient
• DISADVANTAGES
- requires user knowledge and registration that currently are not
available in (Dutch) government – short term: not efficient
(investment needed)
• RIGHT IDEA
-that users can be seduced to opt for the proper channel: usage is
a question of learning
• WRONG IDEA
- that channels can be integrated easily (basic differences in
communication patterns)
Integration between
Separate Channels?
• Call Center and Website? Future possibility
(videophone window in sitepage), but requires much
improvement of websites, otherwise not efficient
• Call Center and E-mail? More likely (request of
address and direct email of particular web-page)
• Call Centre and Service Desk? More likely (direct
appointment with desk via call)
• Website and Service Desk? Already available
(appointment via digital counter)
• Service Desk and Website? Starting (reference to
websites and assistance of those not skilled at or close
to service desks
Conditions for the Implementation of
an Integration Strategy
• All channels offer the same high quality service but
increasingly digital channels offer more advantages
for users (by innovation).
• User learning and ‘seduction’ to use the ‘proper’
channel:
- Better quality of digital service (improvement of
websites: their usability and interactivity)
- information campaigns for the (proper) use of
channels
- tactical and appropriate reference to the better
channel
- assistance in approving digital skills.
Conditions for the Implementation of
an Integration Strategy (2)
• Permanent user registration
• Informed and digitally skilled civil servants
(information and communication managers)
• Information systems and databases that link front
offices, mid offices and back offices.
• This requires Client Contact Centers connecting all
channels with the same systems, databases and civil
servants. This goes for both municipalities and
national executive administrations
Multi-channeling in the Organization:
Integration of Service Channels and Registrations
Channels
SERVICE
perspective
Client
Contact
Centre
Front office
applications
CONFLICT
Mid office
DATA
perspective
Back office
systems