TO ALL:
There have been a couple of buzzwords introduced here over the last few days that some of you might be hearing for the first time (permission marketing, mass customization). They are familiar to me, but I would like to offer some background as to both their origin and why they are not "fad of the month" buzzwords.
These two strategies (and others) came about as a business DEFENSIVE against the paradigm shift of buying decision control to the customer. The customer is us, our friends and relatives and everybody else who has money to spend.
This radical shift of control coincided directly with the growth and expansion of the internet over the past 4-5 years. Simply put, we customers have access to more information and more choices to make better personal buying decisions.
One more time: "We customers have access to more information and more choices to make better personal buying decisions". We can vote with our feet.
How did business get blind-sided so quickly (remember, even Bill Gates made some rapid mid-stream strategic changes regarding the internet)? Here's the major reason. For much of the 1980's and 1990's businesses made huge investments in reengineering their companies through M&A's, down-sizing, addition of technology and training of their work force.
Through all this time, the company's new business development areas were basically ignored, particularly SALES. They were using sales strategies that were unchanged since their development in the 60's and 70's. One I always relate to is "if it's good for General Motors, it's good for America". In those days GM had locked up over 50% of the US car market. Where did that attitude leave GM in Y2K market share?
The value of individual personal information is the gold of the internet. If used correctly, we will all live a better life.
Marketing and sales are fast becoming the driving force of world business. Just as the customers have benefited from better information, so have the companies. Don't give the companies too much credit for creating these strategies, the customers mandated it. Not much different from what we are trying to accomplish here on the thread. Any of us can move in or out of a position within seconds. That's life.
If anyone would like to know more background, I suggest the books of Don Peppers and Martha Rogers. They had it figured out by the early mid-90's
One final buzzword. No matter who says it, the customer owns it. PERCEIVED VALUE.
Good luck to all,
John |
