Wednesday, May 25, 2005
Enterprise One to One Marketing: Tools for Competing in the Interactive Age
Enterprise One to One Marketing: Tools for Competing in the Interactive Age
© 1997 by Don Peppers and Martha Rogers
Sell one customer as many products and services as possible. Share of customer.
Product marketing will be supplanted by relationship marketing.
Improve customer retention, protect and increase margins, create entirely new markets,
I know you. You tell me what you want. I make it. I remember next time.
A Learning Relationship between a customer and an enterprise gets smarter and smarter with every individual interaction, defining in ever more detail the customer’s own individual needs and tastes.
Remember the specifications.
To get the equivalent level of service from any other firm, the customer must reteach the competitor what he has already taught the original firm.
Segments are static while individual customers are dynamic and interactive.
The direction of success for an aggregate market firm is to acquire more customers. While for a customer-driven firm it is to keep customers longer and grow them bigger.
The 1:1 treats customer base as primary asset of the firm, carefully managing the investments. Which customers will yield the highest return to the firm?
To receive a truly customized product or service the customer first has to say what he wants and how it should be delivered. This converts the customers from passive target to active participant in the selling process. The dialogue must pick up where it left off yesterday with particular customers. Creating dialogue opportunities with customers is a prerequisite for soliciting feedback.
Managers should be in charge of customers rather than product and programs.
Customers have different needs from a firm and they represent different valuations to a firm.
Manage the customers actual valuation versus strategic valuation.
Customers also provide references, knowledge of other tastes, design of new products and services.
What is the maximum amount of money the firm is willing to spend to prevent that customer from leaving the franchise.
Every single interaction is a priceless opportunity to learn more.
A competitor will focus on taking away your most valuable customers.
You must remember individual customers and interact with individual customers in a cost-efficient manner.
Customer valuations are uniform or highly differentiated. Customer needs are uniform or highly differentiated, this creates four quadrants.
Increasingly tailor products and services to particular customer needs.
Strategic value is the total profit a firm could realize from a customer if it were to develop a strategy or take some marketing initiative with a particular customer. Analyze which customers to keep, grow, shed.
Large number or customers who are satisfied, but not very satisfied will still leave a franchise.
If you can convince a customers to spend some time or energy teaching your firm how to cater better to his or her individual tastes then you can keep this customer loyal for a longer period of time. When a customers spends time teaching your firm, the customers himself develops a stake in the benefits of this learning.
Customers wants you to know what they want and when and how they want it.
Design interactive, the enterprise needs a convenient way for a customer to specify exactly what he or she needs. You should never require your customer to tell you the same thing twice.
One of the secrets of mass customization is simply that it allows a customer to participate in the actual design and development of his own product.
Begin the Learning Relationship with each customer.
Put some products on automatic replenishment basis.
The goal is not to be consolidator of consumer products but to acquire and own each individual customer relationship.
Give your customer the opportunity to teach you what he wants. Remember it, give it back to him, and keep his business forever.
The customer will have to expend effort in order to teach the firm the specifications. The firm is learning, the customer is teaching. The customer is, through his own effort, increasing the value of the enterprise, to him. (The customer adds service information which tells the firm what the customer needs, what the customer is doing, and what the customer plans for the future.)
Strive for QQP - Quality of product, Quality of service, fair Price.
The biggest cost of discounting to attract new customers is price dilution. It is easier for him to buy from you. It is more convenient for him. He already knows the quality.
Once an individual customer’s needs have been taught to the firm, the value of the firm to that particular customer increases dramatically.
The more needs differentiation there is within the customer base, the more benefit can be realized from a Learning Relationship.
Look for all the opportunities to remember differences among customers.
The trick is to visualize the product in the broadest sense possible. See it as an object that provides a service. What is the service my product is providing?
The focus is to find more products for its customers.
Know which customers have which needs without overexposing any single customer to a whole range of irrelevant services.
Community knowledge comes from the accumulation of information about a whole community of customer tastes and preferences.
Anticipate what a particular customer wants, even before she herself realizes she wants it.
You must teach customers as well as be taught by them. The enterprise services as a conduit for spreading knowledge within the industry.
Teaching: bringing out products benefits, improving the customer’s usage process, and breaking new ground with the customer.
Do an inventory of interaction events between the enterprise and the customer. Manage the complete dialogue, across all media, and integrated by individual customer.
Don’t ask for everything at once. Let the customer choose. What is preferred media?
If we had all the customer specific information we could possibly want, what would we do differently in conducting business with our customers?
Assign a customer manager and reward each customer manager for increasing the value of the customers within his or her own portfolio. The responsibility is to manage each customer relationship, supervising the firm’s dialogue, finding products and services for each.
Measure the Share of Customer (SOC). Why is the share of customer so low? Are you not reaching the right decision makers? Does your company not make the products they need? Do they have special needs that you might be able to meet better with a less standardized product?
Amazon: http://www.amazon.com/exec/obidos/ASIN/038548755X
© 1997 by Don Peppers and Martha Rogers
Sell one customer as many products and services as possible. Share of customer.
Product marketing will be supplanted by relationship marketing.
Improve customer retention, protect and increase margins, create entirely new markets,
I know you. You tell me what you want. I make it. I remember next time.
A Learning Relationship between a customer and an enterprise gets smarter and smarter with every individual interaction, defining in ever more detail the customer’s own individual needs and tastes.
Remember the specifications.
To get the equivalent level of service from any other firm, the customer must reteach the competitor what he has already taught the original firm.
Segments are static while individual customers are dynamic and interactive.
The direction of success for an aggregate market firm is to acquire more customers. While for a customer-driven firm it is to keep customers longer and grow them bigger.
The 1:1 treats customer base as primary asset of the firm, carefully managing the investments. Which customers will yield the highest return to the firm?
To receive a truly customized product or service the customer first has to say what he wants and how it should be delivered. This converts the customers from passive target to active participant in the selling process. The dialogue must pick up where it left off yesterday with particular customers. Creating dialogue opportunities with customers is a prerequisite for soliciting feedback.
Managers should be in charge of customers rather than product and programs.
Customers have different needs from a firm and they represent different valuations to a firm.
Manage the customers actual valuation versus strategic valuation.
Customers also provide references, knowledge of other tastes, design of new products and services.
What is the maximum amount of money the firm is willing to spend to prevent that customer from leaving the franchise.
Every single interaction is a priceless opportunity to learn more.
A competitor will focus on taking away your most valuable customers.
You must remember individual customers and interact with individual customers in a cost-efficient manner.
Customer valuations are uniform or highly differentiated. Customer needs are uniform or highly differentiated, this creates four quadrants.
Increasingly tailor products and services to particular customer needs.
Strategic value is the total profit a firm could realize from a customer if it were to develop a strategy or take some marketing initiative with a particular customer. Analyze which customers to keep, grow, shed.
Large number or customers who are satisfied, but not very satisfied will still leave a franchise.
If you can convince a customers to spend some time or energy teaching your firm how to cater better to his or her individual tastes then you can keep this customer loyal for a longer period of time. When a customers spends time teaching your firm, the customers himself develops a stake in the benefits of this learning.
Customers wants you to know what they want and when and how they want it.
Design interactive, the enterprise needs a convenient way for a customer to specify exactly what he or she needs. You should never require your customer to tell you the same thing twice.
One of the secrets of mass customization is simply that it allows a customer to participate in the actual design and development of his own product.
Begin the Learning Relationship with each customer.
Put some products on automatic replenishment basis.
The goal is not to be consolidator of consumer products but to acquire and own each individual customer relationship.
Give your customer the opportunity to teach you what he wants. Remember it, give it back to him, and keep his business forever.
The customer will have to expend effort in order to teach the firm the specifications. The firm is learning, the customer is teaching. The customer is, through his own effort, increasing the value of the enterprise, to him. (The customer adds service information which tells the firm what the customer needs, what the customer is doing, and what the customer plans for the future.)
Strive for QQP - Quality of product, Quality of service, fair Price.
The biggest cost of discounting to attract new customers is price dilution. It is easier for him to buy from you. It is more convenient for him. He already knows the quality.
Once an individual customer’s needs have been taught to the firm, the value of the firm to that particular customer increases dramatically.
The more needs differentiation there is within the customer base, the more benefit can be realized from a Learning Relationship.
Look for all the opportunities to remember differences among customers.
The trick is to visualize the product in the broadest sense possible. See it as an object that provides a service. What is the service my product is providing?
The focus is to find more products for its customers.
Know which customers have which needs without overexposing any single customer to a whole range of irrelevant services.
Community knowledge comes from the accumulation of information about a whole community of customer tastes and preferences.
Anticipate what a particular customer wants, even before she herself realizes she wants it.
You must teach customers as well as be taught by them. The enterprise services as a conduit for spreading knowledge within the industry.
Teaching: bringing out products benefits, improving the customer’s usage process, and breaking new ground with the customer.
Do an inventory of interaction events between the enterprise and the customer. Manage the complete dialogue, across all media, and integrated by individual customer.
Don’t ask for everything at once. Let the customer choose. What is preferred media?
If we had all the customer specific information we could possibly want, what would we do differently in conducting business with our customers?
Assign a customer manager and reward each customer manager for increasing the value of the customers within his or her own portfolio. The responsibility is to manage each customer relationship, supervising the firm’s dialogue, finding products and services for each.
Measure the Share of Customer (SOC). Why is the share of customer so low? Are you not reaching the right decision makers? Does your company not make the products they need? Do they have special needs that you might be able to meet better with a less standardized product?
Amazon: http://www.amazon.com/exec/obidos/ASIN/038548755X
