Data collection: Central frameworks for localised customer lifetime value

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Keywords: registration, data gathering, e-mail marketing, lifetime value

Data collection: Central frameworks for localised customer lifetime value Toon Diependaele Received: 1 March 2005

Abstract In essence, today’s companies are no longer just selling a product or a service, they are trying to manage and maintain a relationship with their customers and prospects. The internet has brought this intention closer to reality, thanks to the unlimited possibilities connected with this new marketing medium. Due to the universal accessibility of the web and the economies of scale, a more global approach is being established. But this does not have to entail high-cost implementations that do not take into account the need for localised content and data collection. This paper highlights the basics for companies seeking to build lifetime value with their customers through a centralised data-gathering programme that is translated into locally relevant communication.

Introduction The explosion of touchpoints Over the years, the number of touchpoints with consumers has exploded — not only has the frequency per medium increased, but the number of media has grown by 100-fold. Latest research indicates that the average consumer is confronted with more than 2,500 commercial messages a day.1 The vast majority of these messages are unsolicited: billboard and print advertising, radio and television ads, etc; and some are more or less driven by the consumer’s own decisions — point-of-sale materials, printed catalogues, website visits and so on. All these messages are characterised by two common factors: dependence on the user and user indifference. In the case of billboard advertising, an unidentified passer-by decides whether or not he/she wants to pay attention to the message that passes within his range of vision — a message that he or she did not request or expect. By contrast, the less intrusive and more consciously user-driven messages delivered during website visits are driven by user action. A user decides whether or not he wants to visit a website. He then needs actively to type in a URL, and, once on the web pages, he decides what information he will look at and in what order. He is also the one who decides if and when to come back to your site. Toon Diependaele Sony Ericsson 202 Hammersmith Road London W6 7DN, UK Tel: +32 479 99 54 22 E-mail: toon.diependaele @sonyericsson.com

The paradigm shift: From product- to customer-centric engagement In addition to depending on the user for the effectiveness of the messages, it is also clear in the example above that the sender of the message has no control over who receives the message. Today’s organisations are moving

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The paradigm shift: the consumer in control

from product-centric to more customer-centric structures. The consumer is seen as an individual to whom we want to sell products or deliver se