G helping the customer to make an input in the design

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Customising products – e.g. helping the customer to make an input in the design of the product o Customising communication and interaction – the internet makes interaction between marketers and customers easy CRM strategies: analysing the customers’ life time value (LTV) / future profitability and projected duration of their relationships, the organisation can categorise customers as: o Short-term customers: Butterflies: Good fit between company’s offerings and customer’s needs & High profit potential Strangers: Little fit between company’s offerings and customer’s needs & Lowest profit potential o Long-term customers: True friends: Good fit between company’s offerings and customer’s needs & Highest profit potential 28
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Barnacles: Limited fit between company’s offerings and customer’s needs & Low profit potential Study unit 17 – The value of e-commerce in customer behaviour Paradigm shifts in using e-commerce: o Disintermediation and reintermediation – using internet as transaction tool, it is possible to put the ability to buy inside the customer’s home or office. o Personalisation and customisation – providing customers with value is about meeting individual needs. o Shopping on demand o Customers as co-producers – customers can become involved in designing and customising the products they buy. o Blurring between customer and business markets o Power shift to customers – move from supplier-push to consumer-pull. o Automation of consumption – e.g. online grocery shopping Features that affect online customer behaviour: o Online shopping, isolation and integration o Abbreviated attention span o Instant gratification o Monitors o Dependence on shopping agents o Information overload 29
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