One-to-one marketing is defined as "an individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer" by our textbook. The goal of one-to-one marketing is to reduce costs and increase revenue. It is a huge commitment. but can be an advantage to those companies who practice it.
Although most businesses use a mass-marketing approach, it is more efficient for some businesses to use one-to-one marketing to increase share of customer. The difference between mass marketing and one-to-one marketing is that mass marketing increases your odds of getting customers with a less specific focus on a specific people where as one-to-one marketing focuses on specific communication opportunities with each individual customer.
There are four trends that lead to continuing growth of one-to-one marketing. Those four trends are personalization, time savings, loyalty, and technology. Personalization focuses on each consumers specific wants and needs. Time savings involves consumers saving time because they now longer need to shop around and making purchasing decisions. When loyalty is earned consumers with continually buy from the same company. And finally, new technology offers one-to-one marketers a more cost effective way to reach out to their consumers.
Can you think of any companies who practice the one-to-one marketing approach instead of the mass-marketing approach? Has it been beneficial to that company? Why or why not?