The world market for database solutions is forecast to grow at an annual growth rate of 51 percent over the period 1997-2002 to more than $113 billion. In an effort to tap into this expanding market, companies of every kind have rushed to offer all sorts of discounts and specials under the guise of loyalty programs. And, yet, millions of people are tossing out dozens of pieces of junk mail every week. As companies realize this, they are learning that whatever programs they develop to express customer caring must be meaningful to the individual customer C in his or her terms. The real lesson here, argues renowned marketing expert Fred Newell, is that customer care must involve more than discount and point program rewards: that customer loyalty cant be bought C especially in todays Internet-oriented world.
Don Tapscott told attendees at the 81st Annual DMA Conference in October 1998 that we are in the early turbulent days of a transformation of marketing and commerce. Witness the explosion of online shopping especially over the 1998 holiday season and the wild success of online retailers such as Amazon.com. As the Internet builds a culture not unlike the revolution that shopping malls created in the 1970s and 1980s, it must be part of any new solution designed to improve customer loyalty. In his new book, Newell shows how the building of customer relationships in this new culture will call for a broad shift from database marketing to true customer relationship management (CRM) whereby customer behavior is modified over time by strengthening the bond between the customer and the company. Using case studies, Newell shows how winning marketers are executing CRM in real time in todays digital age C and that theres a lot more to E-commerce than just using the Internet, Web, and! e-mail to communicate with customers.
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