1. Second Half: New Rules of Marketing in the Age of ‘unlimited’ Customer Intelligence

2. Flexible Branding of Customers

3. Before Dematerialzation of Consumers we branded Products: Branded Product Customer Identity Differentiation Reputation Success is measured in brand recall/equity

4. Now we brand customers... Branded Product Customer Identity Differentiation Reputation Success is measured in accuracy of customer identity production

5. IT lets firms recognize the customer as an individual with a history, a present, and a future, and be treated as such. IT lets marketer manage customers for profit, –balancing each customer’s value against cost to serve!

6. Xxx xxxxxx xx xxxxxxxxxxxx xxxx xxx xxxx xxxx xxx x x xxxxxx xxx x x x x x x x xx x xxxx xxxx x x x x x x xxxxx xxxx xxxxxxxx xx xx xxx A typical Customer Map Value High Low Cost-to-serve Low High

7. Xxx xxxxxx xx xxxxxxxxxxxx xxxx xxx xxxx xxxx xxx x x xxxxxx xxx x x x x x x x xx x xxxx xxxx x x x x x x xxxxx xxxx xxxxxxxx xx xx xxx Goal: Manage customer relations toward the diagonal Value High Low Cost-to-serve Low High

8. Xxx xxxxxx xx xxxxxxxxxxxx xxxx xxx xxxx xxxx xxx x x xxxxxx xxx x x x x x x x xx x xxxx xxxx x x x x x x xxxxx xxxx xxxxxxxx xx xx xxx Information Marketer: Service delivery system driven by the customer’s assessed value Value High Low Cost-to-serve Low High

9. Steps to a Strong Customer Brand Identify each customer upon acquisition Rank each by gross margin or lifetime value Ask, learn and remember key customer characteristi cs and preferences Give preferred Customers more of what they value For low margin customers, reduce cost-to-serve Cost-to-serve Value IdentifyDifferentiateInteractCustomize

10. Group Think! Identify some specific uses of this customer branding technology! –Pick a industry –Pick a company –Generate a ‘case’ that shows how customer branding could be used by your company to improve profit per customer?

11. Learning About Customers Knowledge acquisition Cross-category analysis Customer differentiation Customization of Offerings and Interactions Communications Products/services Channels Prices Service delivery INTERACTIONS Managing Relationships with Interactive Marketing

12. Tailored Commun- ication Mass Custom- ization Custom Prices Service Delivery Custom Channels Remem- bering Needs Antici- pating Needs Targeting banner ads E-mail Viral marketing Customer designed products (Mattel, Levi, threadless etc.) Auctions Customer control (Priceline. com) Discounts based on behavior Tracking Service based on potential value Dual channels Reduce trans- action costs Collabor- ative filtering Customizing Offerings and Interactions

13. Summary Branding is paramount Branding is no longer limited to products and services Branding needs individualized information Customer branding becomes the foundation of a revolution in all other elements of the 4Ps! CCB managing director David Cole says: "Data is the lifeblood of our industry. Without fresh sources of data, response rates will continue to decline."