ABSTRACT
Surviving the onslaught of globalization and encroaching commoditization has forced today’s companies to move beyond dependence on past strategies for managing channel demand. Instead of competitiveness based on cost reduction, low price, and the “leaning-out” of every process, it is being argued that companies need to shift their attention to expanding their relationships with their customers-in short to be “intimate” with what customers really want, with increasing the customer experience, which in turn can lead to enhanced loyalty and commitment. All too often, companies have tried to become more customer focused by installing CRM systems, implementing customer care programs, and promoting campaigns to build customer engagement that merely mask traditional marketing efforts to simply sell more products to customers. Moving to the next level requires companies to focus as intently on involving customers in emotionally and psychologically fulfilling experiences as they do in ensuring operational effectiveness and cost management.
