One-to-One Marketing
Benefits of One-to-One
Marketing
Higher Profits
-
One to One Marketing delivers economies of
scope. Not economies of scale.
-
It initially concentrates on those 20% or even 10% of
customers who are your most profitable.
-
By providing tailored products to meet particular needs, you
make comparative shopping difficult and
you shift the focus from price to benefits.
-
It aims for lifetime share of
customer
, not a share in an often static and
crowded market.
By developing Mass Customisation capabilities, you can then extend the service
to more customers. You then gain an ever increasing market share without
the need to match the lowest price mass market supplier.
Lower Costs
-
The cost of keeping profitable customers far outweighs
the acquisition cost of new customers.
-
With an intimate knowledge of individual customers, products and services
can be more accurately targeted (right
specification at the right time in the right way).
Market Exploitation
-
It differentiates your company from the
competition. Through collaborative working, customers tell you about their
unmet needs and aspirations as well as their most pressing problems. You
feed those needs directly into NPD. And by using Mass Customisation technology,
you can actually feed those needs directly into your production line.
-
Customers with whom you have a depth of
relation, provide a rich source of new ideas
that can also be exploited with other customers or with new prospects. As
a result, NPD has lower risk of failure and a higher chance of beating the
competition.
-
Satisfied and loyal customers provide excellent references
and referrals.
JS
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1997,98 www.managingchange.com
To Follow: Examples - see FLW slides - separate page?
