Statistical Methods in Customer Relationship Management

9.4 Customized Marketing Campaigns

Customized marketing campaigns, or one-to-one marketing campaigns, refer to campaigns containing marketing messages that are tailored to a selected individual customer based on his/her specific profile, preference, and needs. In the past, to reach the maximum number of clients, and to achieve economies of scale, firms employed mass marketing and targeted the entire market. As marketing progresses from being product-centric to becoming customer-centric, marketers have started to employ campaign-based marketing and target certain segmented groups of customers. Customized marketing is expected to be the next prevalent marketing trend that promises to enable firms to gain competitiveness through differentiation in an increasingly competitive market. It is important for marketing managers to be aware of this emerging trend as they formulate CRM strategies for the firm.

One-to-one marketing has become a widely used marketing strategy due to the number of benefits it offers. First, it is an effective way to ensure information is conveyed to the targeted customers by overcoming media clutter. Given the increasing number of media outlets, one common problem faced by mass marketers is that they are unable to convey their messages to consumers who are inundated with too much information. By targeting a specific individual customer, marketers build a customized marketing campaign and choose a more effective way to communicate to the customer, and ensure the ...