Old customers: interesting new profits

David Payne

Direct marketing - how to grasp the dynamics of `customer service marketing' (CSM). Two key dynamics have influenced the development of this thinking: cheaper and more accessible customer databases, and the realisation that recognising those customers who account for most of your business (the 80/20 rule), and targeting them, is far more profitable than going after new business.

Old customers: interesting new profits

How to grasp the dynamics of 'customer service marketing'

David Payne

The growth of direct marketing is not only about media, or distribution channels, but is broader and more pervasive. Two of its key dynamics are (a) far cheaper and more accessible customer data; and (b) these data's recurrent message that a few identifiable customers are potentially far more profitable than the rest - or than new business. In a taxanony of direct marketers of the 1990's, 'customer sservices marketing' is the dominant growth area, marching to the drum of simple financial imperatives that constitute...

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