The overall benefits, challenges and opportunities to new businesses using internet marketing Task 1
More frequent individualisation and communications to build relationships The main benefits and opportunities of using the above are as follows. When you have a customer’s information you can work out what they might like. With this information you can send them relevant product information and special offers instead of sending everyone the same e-mails which they might get sick of and completely disregard or even choose a different business. Using the information correctly will build a relationship with the customer which in turn will build customer loyalty which is a very important benefit considering the amount of competition. Amazon is good example of a business using customer information correctly and individualisation for customer relations. They build relationships with customers by monitoring and collecting a customer’s purchase history and sending out personalised advertisements via e-mail, social media and as soon as a customer logs in tin the website. This makes it more personal.
Use of communications to promote e.g. Special offers, product launches The main benefits and opportunities of using the above are as follows. The use of online communications can save a lot of money in advertising new products and offers which if it is not done online then it would need to be done using leaflets and flyers which need to be delivered as well, which is another expense which is unnecessary online. Altogether leaflets are not cost effective; they can also lead to unexpected fines by the Local Authorities because of people throwing them away whether it is the leaflet deliverer or the person who has received them. Another benefit is that any information Online can be changed at any time anywhere unlike leaflets and flyers, which would need to be thrown away, which is a waste of resources. Amazon and Tesco both use social media and e-mail to promote special offers and product launches. Also, when a customer logs in they receive personalised adverts, special offers and product launches, this applies to both Tesco and Amazon.
The main benefits and opportunities of the above are as follows. The implementation of New Services such as banking, insurance, mobile phones, pharmacies, photo shops and opticians are really quite simple. If a supermarket offers everything under one roof customers who don’t have time to shop around for the best offers are forced to go the easy option and go for the closest vendor available to them. New Services also give them advantage over rival supermarkets that may not have those services. Because Tesco is a Brick AND Click it means it has buildings in which to place these services. The benefits of offering new services to customers are that it gives it an advantage over companies that do not offer the same services.
Use of purchase history to tailor offers to individuals
The main benefits and opportunities of the above are as follows. Using a customer’s purchase history to group together a number of products that the customer may like may be very beneficial to a business. If a business sends out random advert and offers to random customers then the likelihood of them disregarding them or even choosing another supermarket is quite high. Doing this may be cheaper than other ways such as leaflets but it is not free so it is always best to save money where you can. Also with personalized communications based on the information based on past purchases it can build a relationship with the customer, which in turn builds loyalty. Tesco and Amazon both use customer purchase history which they then use to send them personalised e-mails which contain offers on products based on the gathered information. They use this to send personalized advertisements via e-mails, social media and on the company website when a customer logs in, this is all based on a customer’s purchase...
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