One to one marketing is a customer relationship management concept. It is also known as personalized marketing. One to one marketing is on the rise since the last 15 years and is almost at its peak today with so many websites, retail and food chains relying on one to one marketing to rope in and retain their customers.
An example of one to one marketing being implemented perfectly in India is the Domino’s Pizza chain. Call domino’s with your registered mobile number and they will know your address as well as your favorite side orders. You can repeat your last order once you call. And you don’t have to tell your address again and again for home delivery. They already know your address and have registered it against your mobile number. Thus, Domino’s is efficiently using one to one marketing
One to one marketing was pioneered by Amazon on its book retailing website. People who selected a book from one category were regularly recommended similar books from the same category, or similar books from different categories. Thus, people were more curious and bought more books. Ultimately, Amazon.com ended up becoming the number 1 seller of books online. Similarly, many websites like Ebay and Flipkart and others started such one to one marketing activities to give the best options to their customers. As customers received personalized service, they bought more products from the online retailer.
One on one marketing is of two types and both of them can be explained with simple examples.
Personalization in one to one marketing – Personalized marketing is a form of one on one marketing. The above example of websites and Domino’s show the execution of personalized marketing where the customers are given personalized services. In such cases, the correct CRM database needs to be setup to match the companies need.
Customization in one to one marketing – The best example of customization is Harley Davidson. Each Harley Davidson motorcycle is different because it can be customized as the customer wants it. Another example is Dell. If you order a Dell computer online, you will get it cheaper but you can also customize it as you want. The price will vary as per the features that you ordered. Thus, Customization can also be a fantastic technique of one on one marketing.
Advantages of one to one marketing
- Builds customer base
- Generates referral business
- Retains the old customers
- Improves customer loyalty with loyalty programs
- Can be used for sales promotions or brand recall
- If executed perfectly, brand switching can be avoided as the customer will stick to your brand
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