One-to-one marketing is a process that empowers businesses and consumers equally. It's also a technology-enabled method of CRM marketing, which keeps customers happy and loyal, while also retaining important customer data. One-to-one marketing generally helps produce long-term profits and increase overall customer satisfaction.
One-to-one marketing is also known as personalized marketing. In this type of marketing, the company tries to build variants of the product which target a specific segment of the population. This requires a high level of interaction between the company and customer, which is its base.
There are four steps in the framework of one-to-one marketing.
1. Identify prospects and customers
The first thing marketers should do is target their audience. You wouldn't want to target the mass market blindly with a product that's not actually out there yet. A company would be better off by targeting the most likely segment of audience, like a segment of grocery shoppers, instead. This leads to investing in getting your message to that segment and also potential expansion into other segments more potentially interested, like tech-savvy millennials or rich women.
2. Differentiate customers on the basis of their needs and values to the company
With the help of content, companies can provide value to a large number of customers and, in the process, expand their customer base. What's more is that often times, companies find that it's easier to go after the same group of customers over and over again. A good example would be staying in touch with your first-time customers and letting them know how much they mean while they're still receptive.
You're differentiating customers based on their needs or value. You make customers who are loyal to your company feel special, and you attract new customers who need your product instead.
3. Interact with individual customers
By understanding individual customers, you can make sure that the customer has a positive experience. This helps with building strong relations between the company and customer, which may ultimately lead to repeat business. A satisfied customer who interacted with the company would then spread the word to his or her peers. Furthermore by knowing your customers' needs, you're able to give them exactly what they want without having to fail on anyone else.
4. Customize the product service and message to each customer
The banking industry is highly regulated and specialized, especially for the senior citizens. Nowadays, banks have a large number of financial products targeting different segments of its clients. Insurance plans may target a father who wants insurance for himself, while another product may target that person's mother. Every offering comes with a customized message and they adjust their offering to appeal to the specific audience they're trying to reach.
One to one marketing is not relevant for every company; however, it can only be used by large players. That's because one to one marketing requires a high investment in terms of the database that you have to store and manage. One-on-one marketing costs are also incurred by server requirements, data maintenance, and data warehousing.
One to one marketing is a great option for companies that sell their own product. These companies have numerous products and have an active customer base, so it's important to keep them in the loop. One to one marketing can be influential at these types of businesses because the customers are already familiar with the brand or products.