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One-to-one marketing (sometimes expressed as 1:1 marketing) is a customer relationship management (CRM) strategy emphasizing personalized interactions with customers. The personalization of interactions is thought to foster greater customer loyalty and better return on marketing investment.
Only the term is new; the approach is almost as old as commerce itself. In the past, for example, proprietors of a general store would naturally take a one-to-one approach, remembering details about each customer's preferences and characteristics and using that knowledge to provide better service. One-to-one marketing seeks to reinvest marketing with the personal touch absent from many modern business interactions.
Another approach, customer segmentation, focuses on customizing marketing components for groups of customers rather than individuals.

Benefits of One-to-One Marketing

Higher Profits

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One to One Marketing delivers economies of scope. Not economies of scale.
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It initially concentrates on those 20% or even 10% of customers who are your   most profitable.
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By providing tailored products to meet particular needs, you make comparative shopping difficult and you shift the focus from price to benefits.
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It aims for lifetime share of customer, not a share in an often static and crowded market.
By developing Mass Customization capabilities, you can then extend the service to more customers. You then gain an ever increasing market share without the need to match the lowest price mass market supplier.

Lower Costs
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The cost of keeping profitable customers far outweighs the acquisition cost of new customers.
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With an intimate knowledge of individual customers, products and services can be more accurately targeted (right specification at the right time in the right way).
Market Exploitation
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It differentiates your company from the competition. Through collaborative working, customers tell you about their unmet needs and aspirations as well as their most pressing problems.
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Customers with whom you have a depth of relation, provide a rich source of new ideas that can also be exploited with other customers or with new prospects.