Relationship Marketing Using the Internet Week 10

Objectives Basic concepts One-to-one marketing Technologies for implementing one-to-one Integrating the Internet and direct marketing

Basic Concepts Mass marketing Relationship marketing One-to-one marketing Mass customization

Relationship Marketing Develop highly appropriate products and services Integrate customers into the product design process Be adaptive by using monitoring, analysis and feedback to respond flexibly to the environment Develop partnerships with suppliers, vendors and users to help maintain an edge in the segment

The One-to One Future Focus on share of the customer rather than market share by increasing the revenue from customer as far as possible Focus on customer retention, which is more cost effective than acquisition Concentrate on repeat purchases by cross- and up- selling To achieve the above use dialogue to listen to customer needs and then respond to them in order to build trusting and loyal relationships

The 5Is Identification – learn the characteristics of customers in as much detail as possible to be able to conduct the dialogue Individualism – tailoring the company’s approach to each customer Interaction – continued dialogue is necessary to understand both the customers needs and strategic value Integration – integration of the relationship and knowledge of the customer must extend throughout all part of the company Integrity – essential not loose the trust of the customer

Technological Possibilities of the Internet Using the technology to achieve mass customization of the marketing message The learning relationship – continuous dialogue is established to respond directly to the needs of the customer Incentive for and convenience in establishing the dialogue Acknowledging the privacy of the customer and the demands on her or his time

Benefits of the One-to-One Approach No acquisition costs Less need to offer incentives such as discounts (although desirable) Less price sensitive Loyal customers will recommend the company to others Individual revenue growth occurs as trust increases

One-to-One on the Internet Target more effectively Increase depth, breadth and nature of relationship Lower cost

Achieving the goals Using technology to achieve mass customization of the marketing message and possibly the product The learning relationship –Product evaluations –Questions asked through forms and s –Online feedback –Summary of products purchased Incentives and convenience in establishing the dialogue Acknowledging the privacy of the customer and the demands on her/his time

Achieving One-to-One Marketing Online Attract customer to site (acquisition) Provide incentive Capture customer information to maintain relationship Maintain dialogue consistent with customer’s profile

Marketing Devices Loyalty schemes News about a particular industry New product information and price promotions Industry-specific information to help the customer Personal reminders Customer support

Technologies for implementing One-to-One Web page personalization Push technology Databases Virtual communities

Integrating the Internet and Direct Marketing Outbound telemarketing – cold calling Inbound telemarketing – sales lines and care lines for goods and services to response handling for direct response campaigns Call centers