1-to-1 personalization refers to marketing strategies that are applied directly to a specific consumer. There are four main steps in this process of interaction with customer such as identify, differentiate, interact, and customize (Dooley, 2013). There are many companies that use personalized marketing such as Amazon, Nike, and Dell. Identifying means that the customer’s concerns and needs become known to the company. The process involves standardizing the way companies collect and analyze customer information, understanding customer’s issues and concern that affect purchases. All the information should be current. Differentiating means that some customers are more valuable than others because some customers purchase more and high-margin products, they are worth a higher value. Differentiating involves separating customers based on their needs, purchasing patterns, and value. Interacting involves correct assumptions and understanding that affect the attitudes of both sides. Customization refers to quantifying advantages such as reputation, service, reliability, and quality. 1-to-1 personalization involves aligning the products and services with the needs of individual clients, understanding them, and interacting with them using current information.
Customer management is very important today because of the commodization, branding, and customer information. Commodization refers to distinguishing among similar products that are viewed as commodities, by price. Branding allows companies to distinguish themselves from the competition that allows companies to cultivate a following and strong long-term image. Branding also refers to efforts to build customer loyalty, turnover, and attracting new customers. Customer information is very important for marketers today because companies need to focus on the customer’s immediate needs and provide the fulfillment of these needs. Collecting of customer information happens through various ways such as location-based services, purchasing history, surveying, social networking, and many other.
Reference: Dooley, K. (2013, Oct 23). “The changing role of customer relationships”. Customer Experience Insight. Retrieved from http://www.customerexperienceinsight.com/the-changing-role-of-customer-relationships/
Peppers, D., Rogers, M., & Dorf, B. (1999). “Is Your Company Ready for One-to-One Marketing?” Harvard Business Review. http://hbr.org/1999/01/is-your-company-ready-for-one-to-one-marketing/ar/1