Charles Schwab

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Charles Schwab

• Innovative
• The first discount brokerage (1975)
• The first 24/7 interface in 1975
• Mid 1980s Multichannel access
• In 1984 created the mutual fund supermarket
  concept The Schwab Mutual Fund MarketPlace.
• The first online trading (1985) The Equalizer
  Software (by modem)
• The first voice-response telephone brokerage
  (1989) Telebroker
• Full-featured online trading service on MS
  Windows (1993) StreetSmart unsustainable cost
• In 1996, Schwab Internet brokerage service
  39.95 and then 29.95 (compare to others)
• In 2000, acquired CyberTrader. Became the new
  engine.
• In 2000, purchased U.S. Trust a full service
  investment firm
• 1. What is Charles Schwabs SWOT?
• 2. Target segment, p. 1, p .10
• 3. Focal benefits, p. 5
• 4. Rationale p 11
• 5. Competitors, Exhibit 1
• 6. Branding, p. 4

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Relationships

• Relationship A bond between a firm and
  customers
• Strong, weak, nonexistent -- Tiers
• Intellectual, emotional, both -- Branding
• Web Low degree of interpersonal interaction
  makes it difficult to create bonds.
• How to overcome?
• Trust
• Personalization
• Communication
• Communities
• Trust The belief that a partys word or promise
  is reliable and the party will fulfill its
  obligations. Customers need to believe that a
  firm will fulfill the order, deliver high
  quality, and not misuse information.

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How to establish trust on the web?

• Independent intermediaries (paypal) and
  infomediaries
• Access to other customers experiences, live
  interaction, or both.
• Offer more information and allow easy search and
  comparison, as only the web can offer
• Share your inventory levels
• Intelligent agents and live representatives for
  assistance
• work risk to your advantage high perceived risk
  means increased loyalty
• Personalization / individualization
• Communication
• Communities

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Customization requires Data Collection

• Secondary Data
• Past marketing research surveys
• Other surveys
• Census information
• Publications
• Focus group reports
• NEWSGROUPS
• Primary data collection
• Surveys
• Interviews
• Database Marketing

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Customer Relationship Management

• Technologies to maintain long-term customer
  relationships, including
• e-mail
• databases on individual service needs
• personalization of automated responses
• wizards that allow individuals to ask questions
• auto-response e-mail.

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Broadvision

• BroadVision is the world's leading supplier of
  enterprise self-service (ESS) applications and
  technology that enable organizations to create
  immediate business value by moving interactions,
  transactions and services from a resource-centric
  paradigm to a personalized self-service model
  that enhances growth, reduces costs and improves
  productivity.

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Broadvision Customers

• More than 1,200 leading companies and government
  entities around the globe use BroadVision-powered
  applications to enable their enterprise
  self-service initiatives. They are leveraging the
  web to their wireless devices to unify and extend
  their enterprise's applications, information and
  business processes to better serve their
  employees, partners and customers in a
  personalized and collaborative way.
• BroadVision's customer base represents a broad
  spectrum of organizations, including British
  Telecom, The Boeing Company, ETrade, Ericsson,
  FleetBoston Financial, GE Supply, Home Depot,
  Rockwell Automation, Sears, State of California,
  Toyota and Vodafone.

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Broadvision
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Broadvision Questions

• Whats the idea behind one-to-one web sites?
• What are the advantages of personalization
  systems?
• What are the risks in personalization?
• How can a company maintain trust and privacy with
  personalization?
• How to convince customers they have something to
  gain by disclosing info?
• What impact will personalization have on selling
  prices on the web?
• What is meant by collaborative filtering? Who are
  the competitors that are using collaborative
  filtering to develop applications?
• What is rules-based system?
• Which method is better and under what conditions?
• How is Broadvisions financial performance? Who
  are their customers? Who are their partners?
• Do you think this company will survive? Why or
  why not?
• What are their unique strengths/weaknesses
  relative to their competition.

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New Market research

• Faster and cheaper data collection
• Continuous dialog with customers
• Tracking of clicks
• Can track effectiveness of marketing efforts

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Clickstream data

• The dataset contains one individuals clickstream
  for an entire month.
• Use the data to guess the following about this
  person
• Gender
• Age
• Race
• Marital Status
• Geographic location in U.S.
• City size (urban/suburban/rural)
• Household size
• Household composition (male and female married,
  female head of household, male head of household,
  etc.)
• Household income
• Rents or owns
• Education level of householder
• Age and presence of children
• Car or truck ownership
• Dog or cat ownership

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