Collecting information about customer needs through their lifetime,
An alternative process for building customer relationships online has been suggested by Peppers and Rogers (1998) and Peppers et al. (1999). They suggest the IDIC approach as a framework for customer relationship management and using the web effectively to form and build relationships (Figure 6.8). Examples of the application of IDIC include:
2 Customer differentiation. This refers to building a profile to help segment customers. Appropriate services are then developed for each customer. Activities suggested are identifying the top customers, non-profitable customers, large customers that have ordered less in recent years and customers that buy more products from competitors.
3 Customer interaction. These are interactions provided on-site such as customer service questions or creating a tailored product. More generally, companies should listen to the needs and experiences of major customers. Interactions should be in the customer-preferred channel, for example e-mail, phone or post.
4 Customer communication. This refers to dynamic personalisation or mass customisation of content or e-mails according to the segmentation achieved at the acquisition stage. This stage also involves further market research to find out if products can be further tailored to meet customers' needs.
Communicate differentiated proposition.
Learn more about customer needs through continuous dialogue, incentivised where necessary.
Place customers in segments and develop differentiated content, offers and possibly products for each group.
Figure 6.8 The elements of the IDIC framework
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