Relationship Marketing Using the Internet

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Relationship Marketing Using the Internet

• Week 10

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Objectives

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

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Basic Concepts

• Mass marketing
• Relationship marketing
• One-to-one marketing
• Mass customization

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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

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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

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The 5Is

• Identification learn the characteristics of
  customers in as much detail as possible to be
  able to conduct the dialogue
• Individualism tailoring the companys 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

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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

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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

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One-to-One on the Internet

• Target more effectively
• Increase depth, breadth and nature of
  relationship
• Lower cost

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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

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Achieving One-to-One Marketing Online

• Attract customer to site (acquisition)
• Provide incentive
• Capture customer information to maintain
  relationship
• Maintain dialogue consistent with customers
  profile

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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

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Technologies for implementing One-to-One

• Web page personalization
• E-mail
• Push technology
• Databases
• Virtual communities

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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