AT&T Message Board - Msg: 10408252

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Technology Stocks : AT&T

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To: polarisnh who wrote (2605)	7/7/1999 10:05:00 AM
From: Rascal	Read Replies (1) of 4298

This type of "Bounty" marketing is usually too expensive to maintain. These customers are called "HOT" meaning they have no loyalty. (anyone can buy them). Good marketing takes into account the need for "Sticky" customers who have loyalty. Companies make money when they look at their customers as their "Inventory" and value them as the would a product or commodity. High acquisition costs for these "hot" customers are brutal on marketing costs and profits. AOL continues to lock up long term customer loyalty by adding value to the present relationship. ( ie: Dr.Koop.com, loans, moviephone,etc.) Their revenue stream on a customer is supported heavily by the e-commerce and eyeballs for advertising that a loyal customer provides. Excite's marketing strategy is a very expensive and short term one, IMHO'

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