Travel distribution systems: one-to-one marketing
Customers of low value should either be dropped or made to pay for the services they receive.
Defining the right strategy
A customer base is characterized by customers who have a diverse set of values and/or a diverse set of needs. The customer base can be highly differentiated on both counts or on neither. The nature of the customer differentiation of a company is a guide to an appropriate marketing strategy. By comparing a company's capabilities with its customer base a new strategy can be mapped out, aimed at improving those capabilities needed to turn the business into more of a one-to-one enterprise. If a business has customers with widely varying tastes and preferences, they must be differentiated by their needs. The more the customers differ from one another in needs, the more benefit can be gained from offering a variety of products and services and customizing right down to an individual level.