1. Loyalty and Relationship Marketing
The new focus in marketing is to create longterm relationships with customers
Loyalty marketing focuses on long-term relationships with a lot of customers (mass customization)
The shift from mass marketing to customized marketing will have an impact on the marketing approach tomorrow:
The relationship marketing is not a completely new concept. Especially the marketing concepts of key account management helped the loyalty approach to become what it is today (see below).
Marketing today ...
Objective: to make a sale.
Sale is the end of a customer relationship.
Buyer and seller are independent.
Focus on products (mass production).
Anonymous customer.
Customer buys values.
Costs + profit = price.
One way communication.
Products and resources determine the activities.
Marketing tomorrow...
Objective: To create a Customer.
Sale is the beginning of a customer relationship.
Buyer and seller are dependent from each other.
Focus on overall value creation and customer service (mass customization).
Known customer.
Customer creates values.
Price - Profit = Costs (Target Pricing)
Two way communication.
Relationships determine the activities.
Source: Wehrli 1994
Customer focus
Time focus
long-term
short-term
Individual
Mass
Key Account Marketing
Transactional Marketing
Mass Marketing
Loyalty Marketing