Unformatted text preview: the Internet, the company can analyze a prospective credit card customer and make them an offer in less than 30
seconds. That has helped the company gain some 2.5 million online accounts and add 43 million customers since 1995 —
10 million last year alone. Capital One's earnings grew 30 percent in 2001 when m ost companies were struggling to
achieve flat results.
To be sure, Capital One is on the cutting edge of the fledgling pricing revolution. True one -to-one marketing, where
companies can tailor prices and promotions and configure products for specific cust omers at specific times, is still a long
way off for most firms. But it's clear that companies married to a conventional view of pricing —a sticker price that doesn't
change in response to market conditions or business goals —could be at a distinct disadvantage down the line. Says the
Pricing Society's Mitchell: "Everyone's done everything they can on the cost side to ride the recession; now they're looking
at the top line." The growing interest...
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