1. Learning objectives
Assess the relevance of the concepts of relationship, direct and database marketing marketing on the Internet;
evaluate the potential of the Internet to support one-to-one marketing and the range of techniques and systems available to support dialogue with the customer over the Internet;
assess the characteristics required of tools to implement one-to-one marketing.

2. Questions for marketers
How can the Internet be used to support the different stages of the customer lifecycle?
How do I implement permission marketing?
What do personalisation and mass customisation mean and how should I apply them in my marketing?

3. Elements of CRM
Figure 6.1 Linkages between customer relationship management and related marketing approaches

4. Differences between relational and transactional marketing
Transactional paradigm
Relational paradigm
Market segment
Individual customer
Transaction duration
Lifetime
Margin
Lifetime value
Market share
Most valued customers and customer share
Mass market broadcast
Dialogue and tailored communications
Passive consumers
Empowered clients

5. CRM applications
Sales force automation
Customer service management
Managing the sales process
Campaign management
Analysis

6. Personal and profile data
CRM data
Personal and profile data
Contact details
Preferences
Transaction data
Sales history
Communications data
Campaign history
Research / Feedback / Support queries
Contact reports (B2B)

7. CRM aims and focus
Figure 6.2 The relationship between the customer acquisition, retention and extension phases of the customer lifecycle and loyalty and customer value

8. CRM resource

9. 5Is
Identification – can the customer be recognised for different channel contacts?
Individualisation – can communications and products be tailored?
Interaction – are communications two-way?
Integration – is there a 360 degree view of the customer?
Integrity – is the relationship built on trust?

10. Permission marketing Key concepts Not interruption marketing Not SPAM
Requires opt-in (online to )
Opt-out
Learning about the customer
Initial and continued relationship is based on incentives

11. Mass customisation and personalisation
Figure 6.4 Options for mass customisation and personalisation using the Internet

12. Online relationship building
Figure 6.5 A summary of an effective process of online relationship building

13. Example – Virgin Megastores

14. Example – Silicon

15. Example – Clearly Business

16. IDIC
Figure 6.7 The elements of the IDIC framework

17. e-CRM tools
Database
Data mining
Personalisation systems
Outbound
Inbound management
Virtual communities