Chapter 4 Summary: Permission Marketing

Don Peppers and Martha Rogers wrote a book titled The One To One Future It follows on the belief that companies can profit more if they focus selling more to less customers The thinking behind the book led to the agenda behind Permission Marketing. Getting new customers is expensive, the focus should be on keeping customers longer and getting more money from each of them over time.

There are four major things to focus on when using the one-to-one approach.1. Increase your “share of wallet.” Figure out which needs you can satisfy, then use the knowledge you have, and the trust you built, to make that additional sale.2. Increase the durability of customer relationships. Invest money in customer retention, because it’s a small fraction of the cost of customer acquisition.3. Increase your product offerings to customers. By being customer-focused instead retail-focused, or factory-focused, a manufacturer or merchant can widely increase its offerings, thus increasing share of wallet.4. Create an interactive relationship that leads to meeting more customer needs. It’s a cycle. By constantly encouraging the consumer to give more information, the marketer can offer more products.

There are five cycles that one goes through when getting new customers.

Strangers

Friends

Customers

Loyal Customers

Former Customers

One-to-One Permission Marketing

“The one-to-one marketer works to change his focus from finding as many new customers as he can to extracting themaximum value of each customer”

“The Permission Marketer works to change hisfocus from finding as many prospects as he canto converting the largest number of prospects intocustomers. Then he leverages the permission onan ongoing basis”

Permission Marketing is the cousin of one-to-one marketing.Permission Marketing turns strangers into friends and thenfriends into customers, and One-to-one marketing uses the same techniques, incorporating knowledge, frequency and relevance to turn customers into supercustomers.

How do you get people to sign up?The first step is to still interrupt the customer Each campaign is very different but the concept behind it all should be the same. You want the customer to raise his hand and agree to becoming a loyal exchange of information over time. Be personalBe relevantBe specific

Example