Kemble: I just picked this up in an e-commerce newsletter:
The Challenge of Succeeding in a Networked Economy
Web heavies strive to articulate new business models
By Robert Scott, ShopGuideNews Editor
In his keynote address at the October @dtech conference, John Sculley, partner at
Sculley Brothers and former head of Apple Computers, sketched his view of a
"networked economy" where customers--not producers--are in control and demand the best quality, the best service, the lowest price, a customized product and delivery "right now."
As an example of a successful Internet marketing strategy, he described the
transformation of Dell Computers online. Dell keeps its inventory to 5 or 6 days,
subcontracting its components and not assembling or "taking ownership" until close to
delivery time. This business model allows Dell customers to design their own computers online and receive the finished product in 24-48 hours.
Sculley proclaimed a "reinvention of work" and a "reinvention of marketing" that are being driven by the dynamics of the new electronic economy. "The end goal used to be selling and increasing market share," said Sculley. "Now the end goal is getting a relationship with the customer." When you lose a customer, he explained, it costs 5 times more to replace that customer's sales and 16 times more to replace the profits from that customer.
****IMHO, DELL will set the new standards about how to attract, motivate and retain customers.
-Scott |
