The influence of e-marketing on customer retention

  • Sumo

Electronic marketing- How strategic it is today?

Marketing remains the most important channel through which a business conveys its products and services to the outside world or business world. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. KOTLER, P. et al (2009). “Marketing defined”. Principles of marketing (5th ed.). p. 7. Retrieved 2009-10-23

e-Marketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers. Quirk e-marketing 101chapter 01, page 02, (Nov 2006) www.quirk.biz .

Marketing using the electronic means today is the most important aspect of any business willing to stand out .before the coming of the internet into the business scene marketing was also made via the radio and television but since the World Wide Web (WWW) came it sporadically made marketing viral. Viral in the sense that a business and its products and services can gain an online presence and awareness all round the globe within a very small period of time, e-marketing has so influenced the business environment today that almost any business that does not take advantage of it starts dying. One of the most advantages of e-marketing is the speed with which a transaction is facilitated online. Small businesses now have the opportunity of having a truly global presence with a small budget. In as much as electronic marketing has its negative sides such as fraudulent activities by hackers on customers credit cards, security pass codes to online banking etc.The influence it has in simplifying commercial activities around the world cannot be overemphasize. It then becomes the sum of activities a business establishment makes with the purpose of finding, attracting, winning and retaining its valued customers.

The Paradigm shift

Due to the ever increasing dynamic needs and wants or taste and preferences among various customers, globalization, increasing purchasing power and changing life style of customers, have led to a monumental paradigm shift in marketing, thus we have e-marketing.

Information technology plays an important role in supporting and enhancing business and marketing practices. For example, the recent U.S. study of B2B firms by Day and Bens (2005) concluded that while leading companies were using e-marketing (eM) to extend their competitive advantage, the transformational impact on marketing practices was modest. Instead, the major impact of e M was to complement traditional marketing channels.BRODIE R.J. et al (2007).Is e-marketing coming of age? An examination of the penetration of e-marketing and firm performance. Journal of Interactive Marketing DOI: 10.1002/dir

As noted by Barwise and Farley (2005) in their surveys of firm’s advertising and marketing communication activities in seven countries (United States, Japan, Germany, United Kingdom, France, China, and Brazil),there has been a steady growth in internet advertising and other e M associated with communication in the last few years. From 2002 to 2004,internet-based e M increased its share of spending from 7.0 to 8.2% while traditional media advertising and sales promotion shares of spending had slight declines(41.0-40.6% vs. 20.6-20.5%),brand PR sponsorship remained somewhat stable (15.1 vs. 15.2%), and direct mail declined (14.1-13.6%). Further qualitative research undertaken by Barwise and Farley indicated that these trends are likely to continue.

 

Getting more customers for the business becomes an important factor, but getting to retaining existing customers becomes even much more very important because they keep the business on a going concern

Customer’s Satisfaction

It is pertinent to note that every business needs a customer because they generate sales and profit. It therefore means that the more customers a business have the better the turnover. Getting more customers for the business becomes an important factor, but getting to retaining existing customers becomes even much more very important because they keep the business on a going concern. In as much as it is very good for a company to get new customers, it is very important that it strives to maintain the existing customers it has. The question is – how are these customers retain? From our definition of marketing above we understand that it builds customers relationship and create value. Customer’s satisfaction is the critical factor to the success of any business. Oliver (1981) defines satisfaction as ‘a summary of psychological state resulting from the emotion surrounding expectations [which] is coupled with the consumer’s prior feeling about the consumption experience’. Writers such as Reichheld et al. (2000) suggest that a high proportion of satisfied customers do in fact defect to competitors, and that suppliers must achieve ‘high satisfaction’ or ‘customer delight’ in order to promote customer retention. Other areas of creating value for customers retention includes.

  • Making the customer feel being appreciated, According to JOHN C, author of The Fundamentals of Business to Business Sales and Marketing, “68% of long-term customers stop buying because they just don’t feel ‘loved.’ this could be in a simple birthdays wishes, wedding anniversaries etc, so in order to achieve this you need to have a better relationship with your customers. Using the Know Your Customer form (KYC) will help with such data.
  • Promotion is another means you add value to the customer. Where you encourage them to buy more in other to get one extra for free, this will make a significant impact on them and your business. it also shows that you want to provide them with extra value for their purchases with your business
  • Most importantly is using the e-marketing strategy by creating an online presence for your business this will create a global awareness for the business. The next step will be to drive traffic to your business site and importantly to create a list for potential and existing customers where a better relationship and value is establish for retaining them.

 

REFERENCE

? . KOTLER, P. et al (2009). “Marketing defined”. Principles of marketing (5th ed.). p. 7. Retrieved 2009-10-23

? Quirk e-marketing 101chapter 01, page 02,[online](Nov 2006) www.quirk.biz .

? DAY et al. (2005) JOURNAL OF INTERACTIVE MARKETING VOLUME 21 / NUMBER 1 / WINTER 2007

Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/dir.20071

? BRODIE R.J. (2007).Is e-marketing coming of age? An examination of the penetration of e-marketing and firm performance. Journal of Interactive Marketing DOI: 10.1002/dir

? BARWISE et al. (2005) JOURNAL OF INTERACTIVE MARKETING VOLUME 21 / NUMBER 1 / WINTER 2007 Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/dir.20071

? OLIVER (1981) Defining Consumer Satisfaction by Joan L. Giese and Joseph A …

? REICHHELD et al. (2000) what is the True Value of a Lost Customer?

? JOHN C, author of The Fundamentals of Business to Business Sales and Marketing,

? HEIDI W.(2007).Is e-marketing coming of age? An examination of the penetration of e-marketing and firm performance. Journal of Interactive Marketing DOI: 10.1002/dir

? NICOLE E. C. (2007).Is e-marketing coming of age? An examination of the penetration of e-marketing and firm performance. Journal of Interactive Marketing DOI: 10.1002/dir

? WESLEY J. J. (2007).Is e-marketing coming of age? An examination of the penetration of e-marketing and firm performance. Journal of Interactive Marketing DOI: 10.1002/dir

 

 

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