From Mass to One-to-one Marketing

From Mass to One-to-one Marketing

One-to-one marketing can improve customer loyalty and retention by directing messages to the most likely buyers. Some basic features include:

* Permission-based. Prospects will more likely respond positively if they are offered the choice to subscribe to your information.
* Personalised content. Capture customer preferences from web site visits, surveys and other interactions.
* Proactive. Provide personalised information or promotional giveaways through email or your website.
* Medium of choice. Allow your customers to choose their preferred communication method – be it phone, fax, email or postal mail.

Use surveys and questionnaires. Collect detailed information and provide feedback opportunities for your customers.

Source: Adams Business Media, 2003
Who do you think you’re talking to?

The only messages with a chance of sticking in consumer’s minds are personally relevant.

A recent Harris poll shows that 74 per cent of U.S adults wish more products were customised to their personal needs and tastes, while 70 per cent say they’d be willing to pay a premium for that attention.

Customising communications will help increase response rates and maximise customer relationships.

For Example – A hospitality message tailored to affluent empty-nesters:

‘Dear Alex & Judith,

Imagine watching the sunset from the tranquil luxury of your private balcony.

We would love to lavish you with: golf courses, day spas and evenings at the theatre all a courtesy shuttle bus away. We’ll pick you up at the airport too.

You can book online at http://www.xyzhotelandresort.com/ or toll free 800-555-1234. That sunset is calling……’

Such relevant promotions offer high click-through rates of up to 62 per cent.

Source: Lodging Hospitality. Cleveland Jul 2004 Vol.60 pg. 30
Rise of DM bears witness to value of segmentation

DM is more effective in building an individual customer relationship.

There is more value in retaining existing customers and persuading occasional customers to purchase more often than in gaining new ones.

Even traditionally mass-marketed retailers and newspapers are investing more in building relationships with existing customers. Witness the retail sector’s drop in TV spend of 23 per cent year on year.

Technology, data and new segmentation techniques have enabled marketers to understand consumers at an individual level. Advertisers are aware that unless their messages are relevant to the people they reach, they could damage the brand.

Source: Marketing, London, Nov 27, 2003 pg.2