Thinking About the Case 1. What problems did IGT face before the implementation of the EAP system? 2. How does the new system help control processes? 3. Compared to the situation in 2002, what are the benefits of the ERP system? 4. IGT decided to continue operating its older factory control system. Why do you think it did so? Resting on Electronic Mail for Effective CRM For service industries, providing the customer with a. great experience is key to success. Very often, very small dotalis are what surprise customers and crease a lasting positive impression. The foundation of CAM mothodologies focuses not only on maintaining relationships with customers, but with profitable customers. When emall adoption inereased significantly in the 1990s, many businosses shifted their marketing and communication focus from direct mall to electronic mail. This new technology was viewed as a low-cost, efficient method to communicate with customers. However, the benefits of communicating by email quickly bocame a "double-edged sword" to consumers. Overusing email could quickly create overcommunication with their customers that would result in custamers becoming turned off. The combination of government regulation and the popularity of social media have reduced the reliance on eloctronic mail, A 2010 report by Nielsen conflimed that the share of time relating to email has declined to 28 percent, while time spent with social insults Incruused to 43 percent. Ironically, whlle soclel modia may be popular, consumers remain loyal 142 percent) to emali as the source to obtain informstion about specials and advertisements. An eConsultancy study found that only 3 percent use social-networking sites and 1 percent use Twitter. Forrester Research's 2011 report found that consumers delete fewer emails without reading them. The hotel industry continues to provide properties with amenities that are desired by customers. With over 7,000 hotels, Wyndham Hotel Group has more than 8 million members in its loyalty program. Wyndham wanted to use email campaigns to increase revenue and occupancy at their proporties as well as promote their brand. However, it would be important to balance their campaigns so they did not overcommunicate with members. The competitive nature of the hotei industry creates a fickle customer. The promotions offered by a hotel can often complicate the issue of coordinating email campalgns. However, an offective email campaign requires the same approach as for any other business: discipline. Although Wyndham implamented many email promotions, they were not receiving the results that they planned. Coupled with the effort needed to implement these campaigns, they knew that a new approsch was needed, Working with a marketing firm, Acxiom, a more targated approach was developed. With the outside consultants, they applied best practices to determine the timing and sequences of messages. They created webpages and various omall versions along with custom Subject text. These amails would be sent to a subset of their rewards members in the Unitod States. It was important to tallor future emails to customers bssed on their past actions. Wyndham developed an automated email engine that operated bssed on such data. For example, a confirmation email was sent based on the complotion of a registration. A variety of emsils would be sent to rewards members based on a specific purpose, ranging from free nights to vacation specials to reward point specials. With the focus on emal distribution, Wyndham continued to offer members the ability to opt cut of receiving emails. Their strategy and use of email technology was successfut compared with their previous emall campaigns. Wyndham's total revenue linked directly from email solicitations increased by 187 percent. Various other metrics showed positive gains as well. The rate of emalis that were opened by users incressed by 8.2 percent while registration rates for 8 summer promotion incressed by 43 percent over a prowicus campaign. Sources: Aquino, J. (2012) Don't count out email vet. Customer Relationship Mansgement, 16:19. Aquino, J. (2012). Wyndham hotels' targeted emails break records. Customer Relationship Management, 16, 37. Rubel, S. (2010). Hot or not: Email marketing ve. social-media marketing. Adwertising Age, 81 (29), 16. Thinking About the Case 1. Why was it important for Wyndham to reexamine their emall campalign approach rather than just abandon it? 2. What do you believe was the turning point for this effort? 3. Why have marketing professionals approached email campaigns difforently than other promotional methods? 4. Consider the emails that you receive from businesses, Contrast and compare the approach of these businesses versus Wyndham's approach