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Den som tar utgangspunkt i gårsdagen

for å gjøre noe med morgendagen,

tilhører raskt fortiden.

 

 

Jan Vig’s Résumé

One to One Marketing / CRM

 

 

1. Overview

2. Definitions

3. History

4. Current Situation

5. Why is One to One marketing important today?

6. One to One marketing, trends and technology

7. One to One marketing tools

8. Benefits of One to One Marketing

9. Arguments against One to One marketing

10. Examples on One to One marketing

11. Implementing One to One marketing

12. Conclusions

13. References

 

1. Overview 

The Internet has shown an entirely new way of carrying out e – commerce, marketing activities, information retrieval and networking and is all the time in development. Everything through from marketing research, product development, distribution, promotion, advertising and selling to customer service and support can now be done on the Internet. All of this have created new ways of targeting and informing customers and a new approach to the marketing mix and has and will lead to a complete different way to compete. This is a lot of companies not prepared to handle.

«One to One marketing», where marketers can market to the individual’s needs, «value added marketing», offering something of value such as information, entertainment in return for customer’s attention to the marketing message, and «relationship marketing», where marketers engage customers in a continuing dialogue which translates into repeat visits to the Web site and customer loyalty, «loyalty marketing», «retention programs», «database marketing» are all marketing buzzwords on the Internet used by marketers. According to (Chase 1998) «there are three variables that converge in order for the consumers to feel comfortable and positive about purchasing online: financial incentive, convenience, and added value.» However to succeed with One to One marketing it is vital for every company in the contact with customers to:

 

  • «Minimizing uncertainty»
  • Be able «to understand and solve problems» (Schmidt 1997)

 

Peter Drucker said that the ultimate purpose of a business was to create customers and keep them. Companies create customers by understanding their needs and satisfying them. One to One marketing simply extends this to satisfying them over and over again in keeping with Druckers philosophy.

According to (Forrest 1999) «getting to know your customers has been increasingly important in an age where the consumer’s every move can be closely monitored.»

Internet has unique attributes, setting it quite apart in many respects from traditional marketing media. » The Internet allows customers to act on their own initiative and provide a company with relevant feedback. The Internet allows consumers to be pro-active rather than reactive (Iyer 1996). Accordingly corporations need to be prepared to respond to a steady stream of customer input. Mass customization and one-to-one customer service should readily reciprocate the information that customers provide.» (Forrest 1999) The Internet is transactional and can display audio, video and multimedia.

The Internet creates the opportunity to reach a global audience at a fraction of the cost of traditional marketing channels and at the same time it enables organizations to reach a fine-tuned level of market segmentation. The Internet also facilitates customized content, enabling you to offer personalized marketing messages.

Many of the traditional marketing channels are being eroded by Internet and replaced by new models. Distribution channels are becoming shorter and marketers are now faced with communicating directly with customers via the Internet, cutting out distributors.

This «take over» of distribution channels is opening up new responsibilities for marketers. New ways of marketing mean that marketers must familiarize themselves with a new marketing paradigm and learn new skills, identify new opportunities, or get left behind.

Is the One to One concept realistic and is it the answer? How far are we from One to One marketing?

2. Definitions 

2.1 Marketing process

The marketing process could be described in the following way:

Companies targets Segmentation Marketing-mix Implementation

 

2.2 Customers need

«A need is the basic underlying concept of marketing, and can be defined as a «state of felt deprivation». An unsatisfied need becomes a want when a person looks for objects that will satisfy the need. Marketers must distinguish the differences between needs and wants. For example, people who purchase an air ticket do not want the ticket itself; they are purchasing a means of getting to another destination. » (Monash University marketing course 1999, http://www.buseco.monash.edu.au/Subjects/MKT/)

2.3 Market segmentation  

With this concept we understand. To split the market in sub-groups with homogenous characteristics.

Segmentation does not mean that the people within the subgroups like the same things, or need the same things. Segmentation should be conducted based on customers’ needs and preferences. Out of this, we could say in the same segment, people have the similar interests.

The advantage of segmentation is quite obvious. A company can concentrate the marketing effort against customers with the same needs, and develop products/services specific for this target group. The disadvantage is that in certain situations is it rather to collect adequate information to split the market in smaller groups.

A wide variety of methods of segmentation have been developed over the past years. In the customer market the most commonly used methods have been, geographical, demographic, psychographic and behavior segmentation.

 

According to (Kotler 1998) you have the following model:

 

Market segmentation Market Targeting Market positioning
1. Identifying segmentation variables and segment the market   3.Evaluate the attractiveness of each segment   5. Identify possible positioning concepts for each target segment
         
2. Develop profiles of resulting segments   4. Select the target segment(s)   6. Select, develop, and communicate the chosen positioning concept.

 

2.4 Different definitions

According to (Allen 1998) we could differ One to One marketing from other types of marketing in the following way:

 

  • «Mass marketing. One-to-all or one-to-many communications without specialization of message or medium.»
  • «Target marketing. One-to-many or one-to-few communications with specialization of message and medium for each identified segment of the whole market.»
  • «One-to-one marketing. One-to-few or one-to-one communications with individualized message and medium for each highly targeted market or individual customer.»

 

 

 

2.5 One to One marketing

Basically, One to One marketing means a company understand the needs and preferences of every customer and is able to customize the products or services to meet every customer’s special needs and preferences One to One.

«Whereas mass marketers try to differentiate their products, one-to-one marketers try to differentiate their customers» (Peppers & Rogers 1997)

 

 

Some One to One marketing definitions in addition to the one in chapter 2.4:

  • treat each customer based on his/her individual needs.
  • relationship marketing
  • segment level targeting
  • cross selling
  • direct marketing
  • customers’ positive interaction

 

One to One is therefore an approach that concentrates on providing services or products to one customer at a time by identifying and then meeting their individual needs. It then aims to repeat this many times with each customer, engage the customer in dialogue, building trust in a way that create lifelong relationships. As such it differentiates customers rather than just products. One to One Marketing recognizes that lifetime values of loyal customers who make repeat purchases far exceed that of customers who constantly switch suppliers in search of a bargain.

3. History 

Is One to One marketing a brand new concept?

Many years ago a lot of small villages had owners of stores, who knew everyone in the village. He knew exactly who liked what and who bought what at regular intervals. This was One to One marketing.

However, when the village was growing, he lost tracks of his customers’ personal needs and preferences. So he bought a computer and created a database to track what a customer bought and at what prices. He was a successful a pioneer of One to One marketing.

Businesspeople have always searched for economical ways to create a One to One relationship with each of their prospects and customers. Today, the challenge is doing that through the Internet.

In 1991 the book «Relationship Marketing« from Regis McKenna came out, where it was pinpointed how important it was for the companies to become more customer oriented and less product oriented in their way to do marketing. The aim was to get a targeted and interactive dialog with the customers.

 

 

The most important conclusions from the book:

  • knowledge-based marketing
  • owning the market
  • experience-based marketing
  • adaptive marketing

 

 

(Peppers & Rogers 1993 -97) wrote in 1993 the book «The One to One Future» in the time of database marketing.

 

 

Some key concepts using the Internet were:

  • customer individually dialog
  • law of repeat purchases
  • share of customers
  • customer retention versus acquisition

 

To implement these concepts we use interactive communication.

 

 

The most important parts of the «Enterprise One to One» (Peppers & Rogers 1997-99) are:

  • The new competitive rules
  • Convenience
  • The learning relationship
  • Incentive.

 

 

A company has to find out what the customer needs through interaction and feedback, meet these needs by customizing the products or service, remember the specifications and continue interaction and feedback to learn more about the customer’s individual needs and keep the customers satisfied so the company do not lose them to the competitors.

4. Current Situation

Internet has opened a new era of industrialization. It provides the immediate avenue for interaction or two-way communication between buyer and seller. This avenue of interaction provides marketer the opportunity to understand their customers even better. This will hence make it possible for manufacturers to tailor to individual needs. Hence developing One to One marketing.

«The Internet should not be thought of as a mass market. Mass markets assume the existence of a homogenous buying population. The Internet of today is anything but homogenous. It is filled with individualists who are proud of their uniqueness and promote their eccentricity to the extreme. Mass markets often assume a uniform type of behavior.» (Yesil 1997)

Up till now a lot of companies has focused on internal processes of the organization.

In a lot of cases, these efforts have failed. With that in mind, tomorrow’s opportunities increasingly will revolve around the enhancement of externally focused processes, especially those covering the relationships that companies have with their customers. One that finds strategic advantage through the development of a learning relationship with the customer.

From this perspective, the key to success is the knowledge that companies acquire and apply. As individual customers provide information about their preferences and needs, companies learn how to serve them more effectively. Companies give them exactly what they want, when they want.

The more time a customer spends providing a company with information, the better his service will be and the less inclined he/she will be to seek out the services of a competitor. New information technologies are making and will make these kinds of relationships ever more sensible and cost-effective.

The new paradigm is One to One rather than mass. It focuses on getting a greater share of each customer’s business rather than a greater market share.

The learning relationship accomplishes two things simultaneously. «It helps us learn more and more about what a customer wants.»The second advantage is that the more we understand this customer, the better able we are to meet that customer’s needs better than anyone else can.«(Peppers & Rogers 1998)

We are going through a period of extraordinary market transition. Customers increasingly want products and services to be custom designed to meet their personal needs. They don’t, however, simply desire more choice. In other words: They want what they want when they want it. New technology is a vital aspect of this customer service revolution.

Many businesses «envision a One to One relationship with customers and members in their future. But, how well do they know their customers’ right now today? How many of them buy the companies products or services? Who are the top 10 customers? »

«By what measure? Largest dues payers? Long-time member? Most frequently heard from? What’s the measure of success when it comes to marketing the company? What’s the measure of success when it comes to knowing the company’s best customer? Is it market share? Is it gross revenues? How about purchases of products or services? What do the company know about the top five customers? When did they last purchase a service or product from the company?» (Stackpole 1997) http://www.asaenet.org/Publications/Meetings/chicago97/handouts/stack2.html

Making Theory A Reality Kerry C. Stackpole, CAE President The Association for Work Process Improvement

At the Peppers & Rogers group they practice One to One marketing by telling their members why they should be a member:

 

 

«1. You’ll receive our free e-mail newsletter weekly.2. You can participate in the ongoing discussion groups.3. You can add companies looking to buy or sell 1:1 products and services to the 1:1 Directory.4. The site will change to match your interests and preferences.5. We’ll take special interest in your contributions to the community discussions, the 1:1 Directory, and our collection of 1:1 examples»(Sterne 1999)

 

 

 

 

5. Why is One to One marketing important today?

It is the end of a mass production era. The techniques used by successful Web sites to generate repeat traffic are those that build a community among members of their Web audience. The reason that One to One Web marketing techniques have proven to generate more revenue is individuals now want to be seen and treated as individuals and many are prepared to pay for this. They are better educated and informed; able and willing to make their own decisions. Furthermore they want to belong to a community and One to One Web marketing satisfies those needs. «When done well, the community provides an interaction between the social need that compels individuals to participate in a community and the value proposition that meets a given business objective. Its win-win formula contributes to its success.»(Rockwell 1998)

Competition has been harder. All companies are promoting value for money, quality, durability, etc.. It is difficult to differentiate products. In many businesses, 20% of the customers provide 80% of the profits. Gaining new customers is expensive. «It costs 5 times more to acquire a new customer, than to retain a current customer.» (http://www.passprivilege.com/) To be able to close lifetime relationships with existing customers can produce great profits. The Internet provides a new delivery possibilities whereby the ordinary customer can easily provide feedback either consciously or sub-consciously.

6. One to One marketing, trends and technology

«Customization is a growing Web trend. A Forrester Research report stated, «As the general content of the Web gets broader, individuals will cease aimless surfing activity and gravitate toward sites that deliver products and services customized to their needs.» As the WWW grows, surfers will do less aimless surfing and more portal surfing. That is, surfers will be more inclined to go to a few select sites for their Web needs. By personalizing your visitor’s experience, you can take advantage of this early trend. Companies can start by tailoring the Web site’s content to an individual visitor’s preference and user profile.» (Web Tomorrow.com 1999) (http://www.webtomorrow.com/1to1mktg.htm)

According to (Allen http://www.allen.com/amg/amgleads.html 1999) the hottest trends in Web marketing today are the use of basic database technology to deliver customized Web pages, and the use of personalization systems to deliver a true One to One experience for the Web audience.

The best Internet marketing strategies integrate many different media and technologies. Marketers need to keep abreast of the latest emerging Internet Technologies and understand how they work and can be integrated to meet customers needs.

Internet, interactive TV, web-TV, kiosks, fax, e-mail, voice mail, personal data assist, mobile phones, smart phones, etc. all allow personal messages and encourage customer feedback and at a time and a place that suits the customer.

Customer information system, rules based systems, e-commerce systems, data mining tools, component based IT systems, enterprise repositories, object technology systems to mention a few.

But these new technologies can do far more that simply provide new distribution channels to customers, or to support relationship management. Interactive mediums, together with the support technologies outlined, can help the businesses to do One to One marketing.

In marketing terms the new more interactive technologies as Java, JavaScript, Dynamic HTML, Active X, XTML etc. will help marketers with relationship marketing, improving dialogue with stakeholders, personalized marketing, providing customer selected content which specifically meets their needs and improving response rate and customer service.

Databases will be live, where users can access up to date information in real time on the web, and generally improve database connectivity will provide a strategic advantage to companies as well as marketing benefits, such as improved customer service and reduced administrative costs.

3D (VRML) enables virtual reality 3D environments to be visualized on the Web allowing the customer to interact with objects in those environments and link to other objects and Web pages. The customer can navigate around the car for instance, clicking on objects in a car etc. Future applications of 3D technologies could be in creating new shopping environments on the Web.

But One to One marketing is more than technology. There is a need to manage the customers, not just the company’s products. The company must take products to customers, not expect customers to come to the products. Protecting privacy is important. Threatening privacy destroys trust and discourages collaboration. It requires that all parts of the organization that deal with or support customer services, to be truly customer focused, treating each as an individual.

«We have information capabilities, communication capabilities and production capabilities that we didn’t used to have, All of those make for a pretty powerful, exponential improvement in the way we can relate to customers.» (Peppers & Rogers http://www.1to1.com)

«The real benefits that Internet-based technologies will provide in the near term are linking trading partners in a supply chain and automating business processes to make their transactions more efficient, including delivery services such as Federal Express offering electronic tracking services to business customers, and retailers such as Wal-Mart hooking up over private or public networks to the inventory and ordering systems of suppliers.» (Maddox 1998)

7. One to One marketing tools

There are a number of personalization techniques that are being used successfully to motivate people to return to a Web site time and time again. When implemented properly, One to One Web marketing techniques can be entertaining, informative, and engaging while they build relationships on the Web site.

 

 

According to (Allen 1998) the :

  • One to One Web interactivity
  • One to One Web site personalization
  • One to One interactive discussion communities
  • One to One push
  • One to One presentation, collaboration, and audio/video conferencing
  • One to One Web advertising and promotion
  • Integrating One to One with other marketing systems and processes.

 

 

 

8. Benefits of One to One Marketing

8.1 Higher Profits

One to One Marketing concentrates on those 20% or even 10% of customers who are the companies most profitable. By providing tailored products/services to meet particular needs, companies make comparative shopping difficult and shift the focus from price to benefits. It aims for lifetime share of customer, not a share in an often static and crowded market.

8.2 Lower Costs

As mentioned earlier the costs of acquisition of a new customer is far higher than that of retaining an existing customer.

8.3 Market Exploitation

One to One marketing differentiates the company from the competition. Customers tell the company about their unmet needs as well as their most pressing problems. Customers, with whom the company has a depth of relation, provide a rich source of new ideas that can also be exploited with other customers or with new prospects.

8.4 Personalization

Personalizing and tailoring a Web site make it easier for the companies customers to do business with the company. Creating an online communities provide a One to One experience between the company and the prospects and customers.

8.5 Other arguments for One to One marketing

When One to One Marketing is combined with Mass Customization we have a very powerful synergy that provides a true competitive advantage.

«The smartest companies are starting to use technology to lock in customer loyalty. Every time a customer accesses their technology, they learn as much as they can about that customer through systems that treat the customer in a more targeted and individual fashion.»

«As the system gets to know the customer, it becomes more and more convenient for the customer. If the customer attempts an informational transaction with a competitor’s system, the experience will seem prohibitively inconvenient.»

(http://www.comtec.com/consult/c_onetoone.html)

Interactive tools and databases make the Internet the ideal medium for One to One marketing. Every organization now has the capability to be like the small village grocer and treat the customers in a customized way as they did years ago.

 

 

E-commerce is making it possible to utilize potentials, which up till now has been unused.

  • «The potential of immediate access»
  • «The potential of individualization»
  • «The potential of rationalization»
  • «The potential of volume»

(Steuck 1998)

9. Arguments against One to One marketing

9.1 Customer needs

The intention of One to One marketing is good, but people want to browse around and try new things. Shopping not only fills a need, but also must be an experience.

Each individual customer’s needs and wants may change every day. However, if we find a stable segment structure, the needs and preferences of each segment don’t change. That’s why segment targeting is right instead of One to One. This is an argument against One to One because One to One marketing needs each customer’s stable needs and preferences to predict his/her future needs and preferences.

9.2 Segmentation/targeting

The customers’ needs and preferences are not totally different from each other. If companies are able to group them into segments and treat them at the segment level, the companies marketing strategy shall be more effective.

A company has probably not the capability to provide customized products or services to each of their 5.000 customers. Probably a company isn’t flexible enough with the product or service to fit each customer’s customized needs.

9.3 Technical difficulties

Technically, we are far from One to One marketing. Most of the companies have not conducted market segmentation. One to One marketing is the extreme case of segmentation: each customer forms a segment. While most of the companies have never segmented the customers, suddenly, they should go One to One.

One to One marketing actually is the process of estimating and predicting customer’s behavior. Even with the most advanced statistical technique, we are unable to predict every customer’s choice behavior.

Up till now we have only seen grocery stores creating huge databases to track customers’ preferences and purchase behavior It is probably a reason for that. Only if the customers purchase the same products/services frequently and repeated, a company is able to collect enough data to understand each customer’s needs and shopping behavior. These conditions are also the necessary condition for One to One marketing. Grocery store database shall be the best database for One to One marketing. Before you see grocery stores adopt One to One marketing strategy fully, we are unlikely to see it somewhere else.

On the Internet, cookie might be the original source of online One to One marketing concept. Here we have to do with a lot of difficulties in the data collection process. Some browsers don’t accept cookies. Many people reject cookies all the time. It is impossible to identify most visitors if they access to the web site through a dial-up access. A company needs a lot of analytical muscle to quantify the information and predict what each customer needs.

9.4 Privacy

«The key to getting consumer information is to get it without violating respect for the consumer. It’s a fine line. You want the information, but you want to ask for it in a way that is accepatable to the consumer» (Yesil 1997)

People are afraid of the World of Orwell. Today a lot of companies already have problems getting their customers to send in warranty registration cards, fearing that they will get more junk mail and that their privacy will be violated.

Suppose we enter a clothing store, there is someone meeting use with the dress we exactly want to find in the store. Suppose we go to a bookstore and find that the books we want are already wrapped waiting for use. Everyone knows exactly what we want before we enter the store. How do we feel a life in this way?

9.5 Costs

To build up and maintain a customized database on a One to One relationship is too costly.

9.6 Different arguments

One to One marketing means passive surfing and shopping. It violates the culture of the Internet. We could therefore see One to One marketing as not welcome.

Amazon.com might be the most popular example of One to One marketing online. But probably they are far from doing One to One. By tracking our buying history, Amazon uses this data to recommend other books we probably like. However, the assumptions are far too general. May be we bought a given book simply for its information on one narrow topic. The resulting recommendations from Amazon are then useless.

10. Examples on One to One marketing

«According to a survey of 25 top online merchants by New York market researcher Jupiter Communications, 40% say they have begun to offer personalized features, with 93% saying they will within a year.» «Customization at 25 customer E-commerce sites boosted new customers by 47% in the first year–and revenues by 52%. Even at a cost of $50,000 to $3million for the personalization software, along with computers to store the customer profiles, personalization generally pays for itself within a year.» (Businessweek 1998) (http://www.businessweek.com/1998/40/b3598023.htm)

Music retailer Cdnow Inc. lets customers get a page designed just for us with music suggestions based on our stated preferences, past purchase, and ratings on artists and CD now. Cdnow has seen immediate benefits in customers’ interest.

Amex has seen card member spending in Europe go up by 15% to 20% year over year since including individualized selling messages. When the customers comes to Amex web site, Amex knows who they are and what products the customer uses.

Publishers are able to gather information about their visitors from registration, contents, surveys and other methods. This information builds profiles on visitors that can be used to target commercial advertising to these visitors or target the visitors with personalized messages.

Companies, which sells outdoor equipment over the Internet can through One to One marketing software tag them with a cookie that indicates that the customer bought a tent for instance over the summer. When the winter comes and the companies have something additional concerning tent in stock, they may move the inventory by targeting specific ads to everyone who bought tents.

Portal site as Excite Inc. says people who use personalization come back five times as often as others and view double the number of pages. They also tend to stick around when they come.

Buy a book at online retailer Amazon.com, and the next time you visit, the opening screen will welcome you back by name. Amazon knows your reading taste and suggests new books that meet your tastes by using recommendation software that analyzes your previous purchases, plus any ratings you have made on other books. And it will remember your personal information so you can buy a book with a single mouse click.

Surf over to portals Yahoo Inc. and Excite. Click on lists of what you want to see and do on the Net, and type in some personal information. My Yahoo! or My Excite page displays your name and personal E-mail box news you request sports statistics, stock statistics etc.

Dell Computer Corp., for instance, has created some 1,500 customized home pages for its best customers so they get direct access to corporate-specified personal computers, negotiated discounts, and records of orders and payments.

Pointcast knows how to personalize our screen saver.

Grocery stores have the best database for One to One marketing.

Microsoft has been restructured into five groups oriented around customers needs, rather than the product focus that governed the company since its creation.

A personalized Web experience is critical. By offering personal recommendations, which can change after every purchase and every visit, all the companies hope to get people to keep coming back.

11. Implementing One to One marketing

Companies in all industries today are faced with rising customer disloyalty and shrinking margins. But some firms are enjoying surprising successes by focusing on individual customers, using technology to create long term, individualized, One to One relationships. However «implementing an effective One to One marketing strategy requires a sophisticated consumer intelligence system». (Forrest 1999)

According to (Peppers & Rogers 1998) there are four key steps in implementing a One to One marketing program.

 

 

A company must be able to:

  • «identify the customers, Who are the must valuable customers?
  • differentiate them one from another, it’s important to know which customers are most valuable, and which are least valuable. Rank the customers by this variable, and allocate different strategies to different tiers of customers.
  • interact with them. Drive more and more of the interactions with customers into more cost-efficient media, such as the Web, point-of-purchase (for retailers), or EDI. The company must concentrate on acquiring more useful information during every interaction, information that can help the company make decisions or implement new strategies with respect to the customers.
  • customize some aspect of its product or service to meet the customers individual needs.»

 

 

According to (Seybold 1998) the lifetime value of a companies customers will increase in direct proportion to how easy the company can make it for the customers to do business with the company. It is eight critical success factors.

 

 

They are:

  • «Target the right customers
  • Own the customer’s total experience
  • Streamline business processes that impact the customer
  • Provide a 360 grade view of customers relationship
  • Let customers help themselves
  • Help customers do their jobs
  • Deliver personalized service
  • Foster community»

 

 

 

 

Some advises from Cisco to improving online business.

«1. I you’re not adding value for the customer, don’t bother.

2. Know who your target audience is.

3. Combine traditional marketing and new media to promote the site.» (Maddox 1998)

 

 

12. Conclusions 

«The Internet probably has the greatest potential for dealing with customers on a one-to-one basis, so maintaining a customer focus is important. But don’t forget that with all these new technologies on the Internet, you’ll have to experiment to see what works best with your customers; if they’re not comfortable with new technologies and techniques, their lack of acceptance won’t help your business at all.» (Kosiur 1997)

Furthermore a company needs to have the ability to absorb the data they gather from the customer, analyze them and offer personalization. That means that a company’s investment has to be in infrastructure, tools and time. The return is from repeat business. The challenge, then, is to make sure the investment scales to provide the solution to 5.000 people as easily as 20.

Today, most companies organize themselves by products: Product managers are the basic drivers for marketing. In the future, companies instead will have to invest in customer managers.

The idea’s inherited from industrial revolution are no longer valid, it used to be authorities dictating and people listening, now it’s the other way around, customers want customized, not mass produced products and they want experiences, not products.

The network is changing business life. We do not need intermediaries in the same way as before. People are now asking where do I go to get information and service. Today there are many suppliers and individuals now want a supplier that cover’s his or her needs, in their way. If a company is not ready, there are plenty of alternatives.

Technology is cheap and available for everyone. To track and analyze the Web traffic high performance databases and networking are a necessity.

Most marketers deal with only a limited number of market segments. However, most people like to think of themselves as unique individuals and want to be dealt with on a One to One basis.

Across all industry lines, an average of 45% of customers experiences some problem or difficulty with the product or service. Over half that group is still dissatisfied after contacting the company to try to get help. That’s one of the reasons most companies lose about half their customers every five years. Therefore is a personalized «database ..one of the most important things a company can develop.»(Keyes 1997)»

«In the realm of electronic commerce, one-to-one relations aren’t simply restricted to promotional or sales information, … A Web system could easily allow customer to design and create custom bundles of products for themselves. And because customers are looking for solutions, rather than just products, custom bundles are likely to be of more interest to them than individual pieces. Furthermore, if you’re dealing with information-only products, both the bundling and the delivery can be customized automatically.» Kosiur,1997 )

«Today more and more companies are using interactive technologies like web chat, intelligent agents and interactive recommendation system to help their users find what they need on their web site»(Cliff Allen 11 Mai 1999. http://www.1to1web.com/cgi-bin/gt/news-9905.html?user=ee5ceabf3de)

To see really true multimedia interaction the bandwidth and transmission rate has to improve.

The challenges of One to One are many. At the very least a company needs to provide value to their customers so they are willing to help the company uniquely respond to them. A company needs to be up front about the methods and the intent. Privacy and Security are two very important words in that respect. «Trust is the most important element of commerce» « (Yesil, 1997)

 

Should a company attempt One to One marketing? According to (Webtomorrow 1999) (http://www.webtomorrow.com/1to1mktg.htm)

 

 

  • «Yes, if you are trying to sell online (e – commerce).
  • Yes, if you can identify your customers and differentiate them.
  • Yes, if your customers repeat their buying habits.
  • Yes, if you can find out specific information your customers leave behind during a visit to your Website – click stream, length of stay on specific pages, email addresses, country, etc.
  • Yes, if you can customize each customer’s experience at your Web site for future visits. «

 

 

 

Focus on the share of customers, one customer at a time, rather than just the share of market.

  • Find the 10% of the companies customers and prospects who are most loyal and who offer the biggest opportunities for future profit.(Identify and differentiate)
  • Collaborate with each customer, one at a time, just as a company now work with individual suppliers or marketing partners(interact)
  • Nurture the relationships with each customer by relying on new One to One media vehicles.(Customize)

 

Last but not least my personal opinion is that it is not practical nor I believe possible to achieve One to One marketing using a customized offer paradigm. At best the Internet may make it commercially attractive to segment to a finer level and to have more offers to more segments.

13. References 

Overview

Chase, Larry 1998, Internet World Essential Business Tactics for the Net, John Willey & Sons Inc.,Page 161

Forrest, Ed 1999, Internet Marketing Research, McGraw-Hill Book Company Australia Pty Limited, Page 85, 27

Schmidt, Bob 1997, The Geek’s Guide to Internet Business Success Van Nostrand Reinhold A division of International Thomson Publishing Inc. page 13.

Definitions

Allen, C. Kania, D. and Yaeckel, B.1998, Internet World Guide to One-To-One Web Marketing, John Wiley & Sons, Inc., page 5

Kotler, P. 1998, Marketing Management, Prentice Hall

Monash University marketing course Understanding Marketing Defining needs

Last edited 24-Nov-1998 14:51:29 http://www.buseco.monash.edu.au/Subjects/MKT/MTPonline/defineneeds.html

Pepper, D & Rogers, M 1997, Paperback ,The One to One Future, Building Relationship One Customer at a Time, Doubleday, New York

History

McKenna, R 1991 Relationship Marketing

Pepper, D & Rogers, M 1997, Paperback, The One to One Future, Building Relationship One Customer at a Time, Doubleday, New York

Pepper, D & Rogers, M 1999, 1st current edition Paperback, Enterprise One to One, Doubleday, New York

Current Situation

Pepper, D & Rogers, M 1998, One to One Fieldbook, Doubleday, New York

Stackpole,K.C.,1997, THE ONE-TO-ONE MARKETING DATABASE Making Theory A Reality http://www.asaenet.org/Publications/Meetings/chicago97/handouts/stack2.html

Sterne, Jim 1999, World Wide Web Marketing, 2nd edition John Wiley & Sons, Inc. Page 217, 218

Yesil, Magdalena 1997, Creating the Virtual Store, John Wiley & Sons, Inc. Page 108,109

Why is One to One marketing important today?

Loyality Program http://www.passprivilege.com/3index.html

Rockwell, Browning 1998, Internet World Using the Web to compete in a global Marketplace, John Wiley & Sons, Inc, Page 115,116

One to One marketing, trends and technology

Allen,C. President, GuestTrack, Inc. http://www.allen.com/amg/amgleads.html

Maddox, Kate 1998, Web Commerce Building a Digital Business, John Wiley & Sons, Inc. . Page 12.

Peppers & Rogers 1999 http://www.1to1.com

Web Tomorrow .com 1999 The Trend Toward Customization
http://www.webtomorrow.com/1to1mktg.htm

One to One marketing tools

Allen, C: Kania, D. and Yaeckel, B. 1998, Internet World Guide to One-To-One Web Marketing, John Wiley & Sons, Inc

Benefits of One to One Marketing

Allen, C 1999 http://www.allen.com

Comtech Consultation One- to- One Marketing 1999 http://www.comtec.com/consult/c_onetoone.html

Steuck, Joachim W. 1998, Geshaeftserfolg im Internet, Cornelsen Verlag, Berlin, Germany Page 22

Arguments against One to One Marketing

Yesil, Magdalena 1997, Creating the Virtual Store, John Wiley & Sons, Inc., Page 107)

 

Examples on One to One Marketing

Businessweek 1998, Now it’s your Web. The Net is moving toward one-to-one marketing–and that will change how all companies do business http://www.businessweek.com/1998/40/b3598023.htm

 

Implementing One to One Marketing

Forrest, Ed 1999, Internet Marketing Research, McGraw-Hill Book Company Australia Pty Limited, Page 88

Maddox, Kate 1998, Web Commerce Building a Digital Business, John Wiley & Sons, Inc. ,Page 42

Pepper, D & Rogers, M 1998, One to One Fieldbook, Doubleday, New York

Seybold, P.B, Marshak,R.T 1998, Customers.com Handbook, Patricia Seybold Group, Page 2

Conclusions

Keyes, Jessica 1997, How to be a successful Internet Consultant, McGraw-Hill, Page 222

Kosiur, David 1997, Understanding Electronic Commerce, Microsoft Press , Page 91.92

Webtomorrow One-to-One Marketing…the Web Marketer’s Holy Grail page last modified: April 13, 1999 http://www.webtomorrow.com/1to1mktg.htm

Yesil, Magdalena 1997, Creating the Virtual Store, John Wiley & Sons, Inc., Page72

 

Other Internet sources visited and evaluated

 

Meta Resource

Allen, C ,One-to-One Web marketing resources. A very comprehensive list of resources.

http://www.1to1web.com/cgi-bin/gt/rec.html?user=ee15ceabf3de .

 

 

Divided in different chapters:

  • General
  • Interactivity
  • E-mail
  • Personalization
  • Push
  • Community
  • Web presentation and conferencing
  • Advertising and promotion
  • Tracking
  • Database integration

 

 

Other individual sites

 

http://www.1to1.comhttp://www.enterprise360.comhttp://www.clarion.nohttp://millerhuber.comhttp://customer.com/http://customers.com

http://diffusions.com

http://wilsinet.com

http://www.micromarketing.dk/

http://1to1.plmgroup.com/index

http://icon.co.za/`hermanm/art/don.htm

http://www.1to1web.com

http://www.searchz.com

http://www.allen.com

http://questtrack.com

 

 

 

Books

Allen, Cliff: Kania, Deborah and Yaeckel, Beth 1998, Internet World Guide to One-To-One Web Marketing, John Wiley & Sons, Inc

Chase, Larry 1998, Internet World Essential Business Tactics for the Net, John Willey & Sons Inc

Forrest, Ed 1999, Internet Marketing Research, McGraw-Hill Book Company Australia Pty Limited

Keyes, Jessica 1997, How to be a successful Internet Consultant, McGraw-Hill

Kosiur, David 1997, Understanding Electronic Commerce, Microsoft Press

Kotler, P. 1998, Marketing Management, Prentice Hall

Lawrence, E; Corbitt, B; Tidwall,A; Fisher, J-A; Lawrence,J R 1998, Internet Commerce Digital Models for Business,John Wiley @ Sons

Maddox, Kate 1998, Web Commerce Building a Digital Business, John Wiley & Sons, Inc.

Peppers, Don; Rogers, Martha and Dorf. Bob 1999, One to One Fieldbook, Doubleday a division of Random House, Inc.

Rockwell, Browning 1998, Internet World Using the Web to compete in a global Marketplace, John Wiley & Sons, Inc

Schmidt, Bob 1997, The Geek’s Guide to Internet Business Success Van Nostrand Reinhold A division of International Thomson Publishing Inc.

Seybold

Sterne, Jim 1999, World Wide Web Marketing, 2nd edition John Wiley & Sons, Inc.

Steuck, Joachim W. 1998, Geshaeftserfolg im Internet, Cornelsen Verlag, Berlin, Germany

Yesil, Magdalena 1997, Creating the Virtual Store, John Wiley & Sons, Inc.

For more information, please see my Electronic Résumé by clicking on a target one section at a time.

 

If you have any questions feel free to e-mail me at ja-vig@online.no

 

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