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• The learning relationship – continuous dialogue is established to respond directly to the needs of the customer. • Incentive for and convenience in establishing the dialogue[r]
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 emails – 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 • E-mail • 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 ... 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. .. 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. .. technology • Databases • Virtual communities Integrating the Internet and Direct Marketing • Outbound telemarketing – cold calling • Inbound telemarketing – sales lines and care lines for goods and