Second Half:

New Rules of Marketing in the Age of ‘unlimited’ Customer Intelligence

Flexible Branding of Customers

Before Dematerialzation of Consumers we branded Products:

Branded Product Customer

Identity

Differentiation

Reputation

Success is measuredin brand recall/equity

Now we brand customers...

Branded Product Customer

Identity

Differentiation

Reputation

Success is measured in accuracy of customer identity production

• 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!

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A typical Customer Map

Value

High

Low

Cost-to-serveLow High

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Goal: Manage customer relations toward the diagonal

Value

High

Low

Cost-to-serveLow High

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Information Marketer: Service delivery system driven bythe customer’s assessed value

Value

High

Low

Cost-to-serveLow High

Steps to a Strong Customer Brand

Identify each customer upon acquisition

Rank each bygross margin or

lifetime value Ask, learn and remember key customer characteristics and preferences

Give preferred Customers more of what they value

For low margin customers, reduce cost-to-serve

Cost-to-serve

Val

ue

Identify Differentiate Interact Customize

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?

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

Tailored Commun-

ication

MassCustom-ization

CustomPrices

ServiceDelivery

CustomChannels

Remem-beringNeeds

Antici-patingNeeds

• Targeting banner ads

• E-mail

• Viral marketing

• Customer designed products (Mattel, Levi, threadlessetc.)

• 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

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."