Ticketek.com Fit for E-Commerce in 2003?


Essay, 2003

29 Pages, Grade: 1,0


Excerpt

Table of Contents

1 Introduction
1.1 Objective
1.2 Outline

2 Company profile

3 Current strategy, goals and associated business processes
3.1 Business strategy
3.2 Current goals and associated processes

4 Business model and business process overview
4.1 Business model
4.2 Business process overview and eCommerce implementation

5 Customer and business activities supported by the Internet
5.1 Need recognition and identification (stimulation)
5.2 Information search
5.3 Evaluation and selection
5.4 Purchase payment and delivery
5.4.1 Payment
5.4.2 Ticket delivery
5.5 Customer service and support

6 Strengths, weaknesses and critical success factors
6.1 Ticketek’s eCommerce strengths and weaknesses
6.2 Critical success factor matrix

7 eCommerce IT infrastructure

8 Conclusion

9 Appendix
9.1 Customer relationship management (CRM)
9.1.1 Collecting customer data
9.1.2 Analysing and reacting on customer data
9.2 Email from 29.4.2003
9.3 Confirmation emails
9.3.1 email 1
9.3.2 email 2
9.3.3 email 3 – friendly reminder
9.3.4 Email 4 – automated response
9.4 Result of the ‘event selector’ (extract)
9.5 Possibilities for customer loyalty - What is a ticket?
9.6 SWOT
9.7 Revenue opportunities

10 References

1 Introduction

Ticketek was the lucky first mover to establish the in the ticketing industry tremendously important contracts with venues and event promoters. As a consequence Ticketek has been able to keep competitors well at arm’s length. Customers comfort and habit contributed to a market with monopolistic character, too.

In 2003, however, where people have more leisure time and more money in their pockets than ever before, the next ticket agency is not located at the other end of the town but exactly one mouse click away! And if the customer experiences more fun and an equal level of payment security and reliability at ticket company X’s Web page, he will ditch Ticketek.

In 2008, when there are no paper tickets but only digital tickets around, Ticketek can close down its 200 points of sale in New Zealand (About Ticketek) which will have become more of a handicap than a competitive advantage.

1.1 Objective

The objective of this report is to analyze Ticketek’s current eCommerce strategy and to give recommendations for improvements such as how to shift more customers form conventional channels to the online channel.

But it will also show that cost reduction and a better range to reach customers can’t be the only reasons for selling ticket’s online. This report’s second main goal is to make sensitive to the enormous possibilities the Internet offers to support customer relationship management, because market leaders of the future do customize each interaction with each customer. (Newell, 2000, p.262)

1.2 Outline

Before in the main chapter (5) the customer and business activities supported by the Internet are analysed in detail, a brief company profile is given (2), the current strategy and business goals (3), and the business model as well as processes are examined (4). Chapter six presents on overview over strength and weaknesses and closes with a critical success factor matrix. After a brief look at the eCommerce infrastructure in chapter seven, a conclusion is given in chapter eight.

2 Company profile

Ticketek sell tickets for a wide range of events including sports, concerts, musical and theatre. Ticketek is Australasia’s leading sports and entertainment ticketing service company. In New Zealand alone, yearly more than two million tickets have been sold. (About Ticketek)

Ticketek was founded in 1979 and in May 1999 acquired and since then wholly owned by ecorp Ltd. Ticketek. (About Ticketek)

Ticketek’s subsidiary Softix “develops, installs and supports entertainment ticketing software worldwide” (Softix).

3 Current strategy, goals and associated business processes

3.1 Business strategy

A concrete reason for existence or vision is not stated in the publicly available information. However, Ticketek’s main focus is to consolidate its operations as Australia’s and New Zealand's leading ticketing company and to invest in developing its online capability to make the most of its eCommerce opportunities. (ecorp Ticketek)

This simply means Ticketek strives to widen the customer base in order to increase revenues and to diminish costs which finally results in maximized profits.

The Internet presence is both part and main supporter of this strategy. First of all, it widens the potential customer base because it expands the market place from the physical agencies to every single person with access to the Internet. And secondly, it decreases costs because the physical selling points with its sales agents as well as call centres can be reduced to a great extent. (Turban, King, Lee, Warkentin & Chung, 2002, pp.25-27)

The following figure gives an overview of the sales channels used to sell tickets to consumers.

illustration not visible in this excerpt

Taking the cost efficiency aspect into account it is obvious that Ticketek wants to shift as much ticket sales transactions as possible to the Internet. Hence, fundamental to Ticketek’s success is their website’s ability to attract and convince customers to buy tickets online instead of doing it with cost intensive agencies or call centres. That is to say, Ticketek’s website must offer distinctive added values, conventional methods just cannot.

3.2 Current goals and associated processes

The parent company ecorp specifies the following goals and methods for Ticketek.

illustration not visible in this excerpt

Table 3-1 : Goals and methods, cited from (ecorp Ticketek more)

The three in Table 3-1 listed business processes and goals are all highly dependent on and intertwined with eCommerce. This is evidence that Ticketek, at least in theory, prove consistency between its business strategy, goals and business processes and that they recognize very well the importance of eCommerce for their development.

However, investigations disclosed that firstly, there are shortcomings in the practical implementation of eCommerce functionalities in the respective processes. The stated goals are not reached to a satisfying degree. And secondly, one recognizes that some fundamental goals are either missing or not stated. These unaccounted goals are among others: a) ‘deliver a superb service’ and b) ‘improve the customer relationship’.

It is very likely that these missing goals are the cause for the eCommerce strategy coming a bit off the track. As a matter of fact, Ticketek is currently not able to use “innovative online marketing and sales techniques on a real time basis” (ecorp Ticketek more) as they might have had in mind because they are just not close enough to their customers. Referring to the goals stated by Ticketek, ‘consumers’ are only named in connection with cost reduction.

4 Business model and business process overview

In order to get an idea about what Ticketek is exactly doing, this chapter elaborates on the business model and gives an overview of the business processes from an eCommerce point of view.

4.1 Business model

According to their main activity, Ticketek’s business model incorporates three revenue streams.

illustration not visible in this excerpt

Figure 4-1 : revenue streams, own figure (based on: ecorp Ticketek more)

As shown, beneath Ticketek there are at least three other parties to deal with. Ticketek is conducting business on a B2B (with venues and event promoters) and a B2C (with consumers) basis.

Key to Ticketek’s business success is finally based on two aspects. Firstly, the amount of consumers they can attract to buy tickets with them and how often each customer comes back. This affects also their bargaining power for making contracts with venues and event promoters. And secondly, their internal cost structure. Technology can be used as a very effective tool in order to improve both.

The revenue model finally proved to be successful in 2002 when Ticketek reached the break even point (ecorp annual report 2002, p.9). Nevertheless, Ticketek should look out for further revenue streams to solidify its position. The future will bring far-reaching changes to the ticketing industry like e.g. digital tickets. Digital tickets, however, will dry up the revenues derived from the mailing and dispatching of tickets (revenue source no. 2).

Technology and eCommerce offer more opportunities than currently explored. Appendix chapter 9.7 offers some ideas for further revenue opportunities.

4.2 Business process overview and eCommerce implementation

Table 4-1 lists Ticketek’s core business processes. Those discussed in chapter 3.2 are included or part of these listed here. It is also evaluated in brief to what extent each process is currently supported by eCommerce.

illustration not visible in this excerpt

Table 4-1: business processes and eCommerce support

5 Customer and business activities supported by the Internet

It is recommended, that service and support of all kinds is given to the customer throughout his entire contact process with the company (Turban et al, 2002, pp.125-136). In an online environment this is especially important, because the merchant and the customer do not meet face to face (Turban et al, 2002, p.135). The lack of personal contact is one of the main barriers for Ticketek’s customers preventing them from buying tickets online.

In the following, we analyse the purchasing decision making process in combination with the product life cycle according to Turban et al (2002, pp.125-136). Improvements are suggested with focus on B2C activities that do create a value in customer’s eyes and which make the end customer want to go online, stay online and buy a ticket. Online shopping needs to be fun!

Lots of the suggested improvements coming next rely on the assumption that Ticketek knows its customers and has build up customer profiles, which is the field of customer relationship management. Ticketek is very weak in CRM, though. Therefore, appendix chapter 9.1 elaborates on CRM itself and on how Ticketek can conduct CRM.

5.1 Need recognition and identification (stimulation)

Visiting a concert or a musical usually is for people not a matter of survival rather than pure entertainment which enriches their lives. Therefore consumers tend not to look actively for next events. Moreover tickets belong to a specific product / service category which usually do not create a feeling of loyalty in customers (see appendix 9.5). Consequently Ticketek should take on the active part and stimulate the consumers’ lust for entertainment.

If the customer is off-line this can be done by use of a push strategy. This comprises that Ticketek actively informs the customer via email or SMS about events he is really keen on (Turban et al, 2002, p.187). If it is not cost efficient to send e.g. SMS to all registered members, it is an easy thing for Ticketek to search their customer profiles for those who create most revenue.

If the customer is on-line, the webpage should be personalized to his preferences. American Airlines demonstrate that it is possible to generate personalized pages for about a million customers by using intelligent agents. Intelligent agents can dynamically match customer profiles with the database of contents. At Ticketek a rugby fan should get a warm welcome by getting the next rugby events presented. (Turban et al, 2002, p.139)

Ticketek, however, is only sending emails informing about new events, partly enriched with prices to lure customers. But the email does not even address the customer personally let alone having a customized content (see appendix, chapter 9.2). And when logged in, there is no difference in the content of the webpage compared to being logged off, meaning Ticketek’s eCommerce platform has not heard of personalization yet. So being a My Ticketek member brings only little benefit in terms of getting un-personalized newsletters and saving a minute when buying a ticket.

A further possibility to stimulate customers would be to give sound bites of the music of some artist which are coming up (Turban et al, 2002, p.135). It occurs quite often that one can’t assign the name of a musician to his/her music. If Ticketek’s webpage could point out to the customer - by giving an audio example - that the current radio hit ‘Don’t know why’ belongs to Norah Jones, the customer might be happy to buy a ticket even though he might have never heard of the artist’s name.

Another very effective option is to have an own Internet radio channel on the Web site which plays stored information and sound bites of the coming events. (Turban et al, 2002, p. 883)

[...]

Excerpt out of 29 pages

Details

Title
Ticketek.com Fit for E-Commerce in 2003?
College
University of Auckland
Course
E-Commerce
Grade
1,0
Author
Year
2003
Pages
29
Catalog Number
V44837
ISBN (eBook)
9783638423557
File size
783 KB
Language
English
Notes
www.ticketek.com - New Zealand webpage - The report's objective is to analyze Ticketek's current eCommerce strategy and to give recommendations for improvements such as how to shift more customers from conventional channels to the online channel. The second main goal is to make sensitive to the enormous possibilities the Internet offers to support CRM.
Tags
Ticketek, E-Commerce
Quote paper
Marc Dominick (Author), 2003, Ticketek.com Fit for E-Commerce in 2003?, Munich, GRIN Verlag, https://www.grin.com/document/44837

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