Transcript Relationship Marketing Using the Internet

Relationship Marketing Using
the Internet
Week 10
Objectives
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Basic concepts
One-to-one marketing
Technologies for implementing one-to-one
Integrating the Internet and direct marketing
Basic Concepts
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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 upselling
• 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
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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
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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